Aviva Survey Reveals 15% Feel Overwhelmed by Debt as Retirement Nears

Nearly half of the over-55s based on the Aviva survey still have some sort of debt, despite getting closer to retirement.

Around one in seven (15%) people feel their debt is out of control or they have no way of paying it off, according to an Aviva survey. (Photo: Support for Stepdads)

Aviva Survey Reveals 15% Feel Overwhelmed by Debt

Despite approaching retirement, a significant number of individuals in the over-55 age group are still burdened by debt, according to a recent Aviva survey.

The Aviva survey revealed that nearly half of those surveyed in this age bracket, 48% to be exact, still carry some form of debt.

Moreover, the research indicated that around 15% of respondents feel that their debt is spiraling out of control or that they have no means of repaying it, a published article in Independent reported.

Interestingly, the Aviva survey also highlighted that the issue of debt extends beyond the older population. Within the 45 to 54 age group, the percentage of individuals who feel overwhelmed by debt rose to 18%.

Additionally, the Aviva survey found that two-thirds of all respondents, accounting for 67% of the sample, have debt weighing on their minds.

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Aviva Survey Expert Highlights Rising Debt Concerns

Alistair McQueen, the head of savings and retirement at Aviva, addressed the significance of this issue, particularly in light of rising interest rates.

He stated that the cost of debt has taken center stage, potentially forcing millions to reconsider their retirement plans.  McQueen emphasized the importance of proactive measures to tackle debt before reaching retirement age.

Such measures may include consolidating debt, paying off high-interest loans, switching to more affordable rates, reducing unnecessary expenses, or enrolling in a debt management plan.

Seeking professional advice, such as working with a financial adviser, was also suggested as a beneficial step. McQueen recommended that individuals create a comprehensive retirement plan that takes debt into account and ensures sufficient income to cover expenses and enjoy the retirement years.

For those in need of guidance, the government-backed MoneyHelper service can direct individuals to free debt advice services. Moreover, schemes granting individuals “breathing space” from their debts are available, and lenders can offer various support options to those struggling with repayments.

The government also provides a range of cost-of-living support, with more information accessible on the official gov. UK website.

The research was conducted in April and involved over 2,000 participants, as surveyed Censuswide.

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