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.    

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The best reasons to avoid getting into debt

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