In the past having high levels of debt is something that has commonly been associated with younger people. However, it has emerged that more and more older people are now struggling with personal debt levels, making it difficult for many to be able to enjoy their retirement. For those that still have a fair amount of debt when retirement comes around there is no other option other than to continue working, as otherwise they will find it impossible to make repayments on their debts.
However, those with a decent pension pot may find that they can still afford to retire and can use part of their pension money to repay any debt that they have outstanding at the time that they retire. In order to do this, however, consumers need to ensure that they have an adequate pension that will allow them to make these debt repayments and leave them enough to enjoy a pleasant and comfortable retirements rather than leaving them struggling to make ends meet.
A huge number of people in their 30s and 40s have little or nothing by way of a pension pot, and whilst retirement may seem like it is still a very long way off it can come around far more quickly than many expect. This leaves many people in the difficult situation of having to determine whether or not they can actually afford to retire on the pension that they will receive, which is particularly hard if you still have outstanding debt. For many the only option is to continue working in order to be able to afford living costs.
A survey was recently carried out by the Prudential showing that more and more people that were coming up to retirement age were considering staying on at work for up to ten years in order to earn more money and increase their pension pot. However, some forward planning means that future generations that are coming up to retirement in years to come may not have to face this difficult decision. Prudential officials have said that consumers should start planning their pension early and should seek financial advice from experts to ensure that they get the right pension for their needs.
Tags: decent pension, age, official, time, difficult situationAn official from Prudential said: “This year will see the phasing out of the default retirement age, making it easier for those wishing to stay on at work. Additional retirement income is also becoming more important as the security of a defined benefit pension scheme disappears for many people.” He added: “Seeking advice from a financial adviser should be a prerequisite to ensuring you achieve the level of pension income you want and need.”