Lack of retirement planning could ‘induce debt difficulties’

Millions of people could be set to develop debt management problems in their retirement, a new study indicates.

According to a survey by Abbey Savings, some 4.5 million Britons over the age of 55 have not started making plans for retirement, with a further two million yet to consider the issue.

Head of savings Reza Attar-Zadeh said: "This research shows the potential retirement time bomb that the 50+ generation are facing."

The study also revealed that about one million Britons over the age of 55 believe they will have to work during retirement as they will not have enough savings, which in turn could impact their debt management.

Meanwhile, a study by the Alliance Research Trust Centre earlier this month revealed older people could have increased debt difficulties and struggle to make personal loan payments as the over-75s face an inflation rate some 56 per cent higher than the government’s 2006 figure.

Interfinancial providing you with breaking debt management news.