When we think of retirement, words like carefree and secure often come to mind. Retirement is thought of as a relaxed period of life, where you’re free to enjoy savings, spend time with family and perhaps start a few new hobbies.
Recent client research by PayPlan shows a different reality. No longer receiving a working wage, combined with factors such as the rising cost of living, debt levels and often meagre pensions, is pushing thousands of people into financial hardship and preventing them from enjoying the retirement they expected.
Thousands of clients aged over 55 were asked various questions about their financial health, debt levels and retirement prospects.
Of a total of 3,251 participants:
- Only 10% said that they planned to retire on time
- One in three said that they’ve had to cut down on heating in order to pay off their debts
- Of those who’ve already retired, 68% didn’t feel comfortable in their retirement due to their finances
One PayPlan client cited the ‘loss of work hours with a decrease in income’ as the main reason for them seeking debt advice, proving that the loss of income that comes with retirement is indeed a prevalent factor for retirees falling into debt.
Before individuals had entered a debt plan:
- 45% of had cut down on food spending
- 47% cut down on mobility/travel spending
- 77% cut down on their social activities
- 73% stopped spending as much on their hobbies or leisure activities
On a more positive note…
Some of the answers proved that it is possible to enjoy a happy retirement with the right financial help, with one person saying: “I was heading to having a breakdown; I just couldn’t cope with the harassment of creditors, so thanks to PayPlan for saving me and putting me into a life I could cope with.”
Another said: “It’s a long story, but PayPlan were a lifesaver. I couldn’t sleep and there was nobody to talk to. I owed over £20,000, but with PayPlan’s help I’m managing to repay. There’s always a light at the end of the tunnel, so don’t hide from the problem, just face it and you’ll be able to sleep again.”
If you are working with a client who is worried about dealing with debts in retirements, call one of PayPlan’s friendly advisers on 0800 280 2816 or get in touch with the partnership team to set up a bespoke referral process.