Article | Fabulous Women

How are your parents managing financially?

Posted on 04/09/2012

You imagine that at retirement you largely have your financial house in order. Mortgage paid off, one or more pensions, downsizing your house to release equity and perhaps a bit of a nest egg. This is clearly not the case anymore.

The Express recently indicated that this is far from the truth. One in three pensioners owes 25,000. Some owe as much as 90,000 while others have 250,000 in unsecured loans.

I have always been deeply sceptical of research and the way it can be manipulated. You can argue that you can make statistics say what you want them to say, after all.

I always prefer to hear factually what I deeply suspect from conversations I have with my clients and it seems, through this article, that several of them are not at all alone in the financial minefield. With a sample of 4,400 respondents, this research certainly seems to have some clout.

From the sample, the analysis says that 31% used some or all of the cash they had raised from equity release to clear their debts. With the average pensioner household income of 17,727 before tax and the average repayments for debts at 385 a month, that amounts to 26% of income being used to pay debts.

So, how does this come about? Did some jump on the property bandwagon in the belief that it was a last ditch effort to raise their financial profile? Well, we thought we couldnt lose with bricks and mortar. (I wish I could have pound for every client who said that.)

Also, I have heard first hand of pensioners 'loaning' money to their children, either to help them get a foot on the housing ladder, or more so these days, to pay off debts...........

One thing is for certain is that debt is increasing for pensioners and I am going to follow this blog by writing hints and tips on how to help ourselves. :)

For help and information please call me on 07768 19707, or email me jane@osfs.co.uk     Thank you  Jane

Back Author : Jane Hardy

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