Why are retired people struggling with debt in silence?
Retired people are twice as likely to suffer with unmanageable debt than ask for help. Why is that and what options do they have?
According to our figures pensioners are twice as likely to be in financial trouble than to get help. While 15% of all people in debt are retired, last year only 17% of our clients were.
So why don’t retired people access debt help?
Age UK research shows there are a number of barriers preventing them from bettering their situation. Some find the number of debt solutions available to them daunting or are put off by previous bad experiences. They may be housebound or have difficulty filling out forms.
All of this is underpinned by not wanting to trouble people or ask for assistance.
What debt help is there for older people?
Older people on a fixed pension income have been harder hit by the economic downturn and the rising cost of living. That’s why it’s even more important they have access to the debt help services they need.
It’s important to try to break down the barriers that prevent older people from getting debt help. We attempt to do this by offering:
- A freephone helpline (0800 138 1111) open 8am to 8pm Monday to Friday and Saturday 9am. We’re happy for a family member or friend to call in and speak to us on another person’s behalf. As long as they are there to give consent.
- We also have a confidential online debt advice tool called StepChange Debt Remedy. Based on budget details it offers clear on advice on the best way to deal with debts. As this is available 24 hours a day someone could help after work or at weekends.
Everyone’s situation is different. After looking at the budget we can ensure priorities are covered first before looking at what debt management solutions are best.
What’s the best debt solution in retirement?
Because older people are on a fixed pension income it can be difficult to boost money coming in. Cutting outgoings can be difficult too as more money is spent on things like utility bills and food, rather than nights out and clothes.
As well as the standard debt solutions, an option open to older people is equity release. It’s a way for people aged 55 and over to release equity in their home without ever having to sell their house. As with any debt solution it is imperative a person gets free, professional and impartial equity release advice before making any decisions.
Breaking down barriers
As we’ve seen, older people are twice as likely to suffer from debt problems than seek help. While no debt problem is impossible, the earlier a person seeks help the easier it is to solve.
There are social barriers such as pride, apprehension or impairments, as well as economic barriers, like the limitations of being on a fixed income.
If anyone is struggling with debt it’s important they feel they can access free, impartial advice. Hopefully through the Helpline and online tool we can help people in need, whatever stage of life they’re at.
More on debt:
How the most vulnerable can help themselves out of debt
Help us to clean up payday loans
Join the war on nuisance callers
Women wear the financial trousers…but is that best?
Should I manage my debt problem myself?
The best reasons to avoid getting into debt
Six signs you're caught in a debt spiral
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Comments
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Its not only the pensioners who will suffer. There seem to be a growing number of people approaching 50 who are laid off and can't get jobs. After all, who would want to employ a middle aged person when they can employ a school leaver or immigrant worker on a minimum wage? Both my husband and myself are out of work with no immediate prospect of a job that will pay our household bills and my husbands pension seems a long way off. With January 2014 looming where European immigrants have the same right to jobs in the UK, our situation is set to worsen.
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It really sucks that the likes of Joan Bakewell are urging well-off pensioners to donate their Winter Fuel Payment to charity. I reckon fewer than 1 pensioner in 50 can afford to do so. It's all right for Ms Bakewell - she has a fat BBC pension. Of course BBC pensions are fat - have you seen the recent golden handshakes?
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It most odd to read this as the government are targeting pensioners as the ones with the money! The government are after the enormous equity tied up in the 'baby -boomers' houses so they had better not spend it before they die otherwise the Treasury will have to look elsewhere for its future cash to pay of Chinese debts that he government are fast running up. I reckon the outlook of most people in the UK is very bleak for the future and I hold no hopes for any current party sorting it out only making the mess worse. I do blame the Tories for starting PFI, but Labour seized on it when in office as a means of having something without paying for it , well now anyway. But I doubt one in a hundred of people on the street understand anything about the finances of the country as ignorance is bliss in the UK.No wonder we get such lousy governance.
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17 December 2013