A rising number of consumers in the UK are said to be retiring with debts still hanging around their necks. In the past most people had repaid their debts by the time retirement came around, enabling them to relax and enjoy a pleasant retirement with adequate funding. However, times are hard for all age groups at the moment and many that are coming up to retirement still have many debts to pay off.

It is claimed that a rising number of people coming up to pension age will have to look at continuing with work past their retirement age in order to have adequate funds to pay for living costs and pay debts. Many may have to work a couple of years past retirements by some may have to extend their working, albeit on a part time basis, by up to ten years.

A survey that was carried out recently by the Prudential showed that only 12 percent of people polled were happy to retire on time because they had an adequate pension in place to fund their lifestyle and enable them to keep up with financial commitments.

An official from the 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 also said that it was important for consumers to take the time to see a financial advisor and set up a good pension sooner rather than later to ensure that they would not have to work past retirement.

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.”