Retirement savers struggle to clear debts

Retirement savers face difficulty clearing their debts, according to research by Key Retirement.

A survey of 3,000 adults revealed 38% of workers over 55 struggle to clear their credit card balances every month.

The research also showed a lack of awareness about the cost of credit card debt.

While 43% say they don't know what interest rate they pay, around 1 in 10 (11%) are paying rates of more than 20%.

Nearly a third (32%) have other debts, such as personal loans, car finance or overdrafts, on top of their credit card borrowing.

This amounts to significant debt in some cases, as 13% owe £10,000 or more on credit cards and loans.

Dean Mirfin, chief product officer at Key Retirement, said:

"People approaching the end of their working lives need to get their financial house in order as they literally cannot afford to be complacent about the risk of debt when they are retired.

"The main cause of debt no matter how old you are is an income that is lower than your outgoings and that is an issue that is easier to tackle while you are working and have a higher income."

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