Monday 1st October, 2007 

In the last five years the number of pensioners suffering from severe debt problem has resulted in the number of pensioners going bankrupted to more than double, a recent survey has revealed.

Accountant firm Wilkins Kennedy has revealed that 7 percent of bankruptcies so far this year have been amongst the OAP's.

The reason for this worrying rise has been laid at the door of rising household bills, home refurbishment and lending money to their children to help them out.

Many over 65's are struggling to financially survive on their state pension and savings, trying to budget for the next interest rate rise or next council tax increase or just paying for the ever more expensive food bill. In addition to this many are trying to help their children and grandchildren to get on the property ladder by lending them money.

The extent of this indebtedness of our ageing population is very worrying. It is estimated that the retired population of the UK owes £57 billion with the average unsecured debt amongst the OAP's being £5,900.

For many pensioners these debts have not resulted from financial mismanagement but from the high cost of living. Pensioners are hit the hardest from an increase in inflation, as many do not have their savings or pensions indexed linked. Research from the Alliance Trust has revealed that the actual inflation rate for the over 75's is between 0.75% and 1% greater than that of an average householder.

Debtwatchdog calls on Mr Darling to make the pension system easier to understand. Many pensioners are missing out on benefits which are due to them, as a result of the confusing nature of the pension system.

Debtwatchdog provides you with free impartial advice on your debt problem. If you are struggling with balancing your finances or need help formulating a plan to deal with your debt problem complete our Statement of Affairs to start you on the road to recovery.