Payplan, the free debt solution provider, said advisers must help customers plan for repaying debts in retirement after it recorded a significant increase in calls from people aged 55 and over with pension debt concerns.
It said that the prospect of debt for those facing or already in retirement was increasing with the poor performance of final salary pension funds, cuts in pension tax relief and the likelihood of public sector pensions being frozen.
John Fairhurst, managing director at Payplan, said: “The over-50s are our fastest growing age group and have the biggest debts according to our latest figures. This immediately throws up a red alert for us; high levels of personal debt coupled with a lower than expected retirement income is a potential recipe for long-term hardship.
“It is vital that advisers encourage older clients to factor debt repayment into their retirement strategy.”
He added: “The concerns over government changes to pension income has started to worry retirees who have already been seriously hit by a final salary pensions fund which has fallen drastically below their expected return.
“The situation is worse for 200,000 UK pensioners living in private retirement property, who, according to AgeUK, are being burdened with spiralling service charges and unfair fees.”
