The Demos report (see yesterday’s post) believed that the retiring boomer generation will be defined by two distinct attitudes ‘social activism and individualism’.
Well into this mixture of opposing attitudes needs to be sprinkled the issue of pensioner debt. A few facts. The average amount that pensioners owe is now £1335 – this is in addition to any outstanding mortgage. During the first half of this year British pensioners took out nearly 12,000 property ‘equity release’ schemes more than double the same period of the previous year. Total borrowing through these schemes now equals £2.7 Billion. These facts were in an article by Bill Jamieson in ‘The Business’ last Sunday.
A chilling personal insight into this issue came during the testimony from one of the witnesses at the Hutton Enquiry. A close friend of Dr Kelly, Professor Roger Avery, said he (Dr Kelly) was worried "about making ends meet after retirement". Remember, Dr Kelly was a life time public sector employee so he would have received an inflation proof, final salary pension.
How the 50+ will finance their next 30 years of life is going to be one hell of a problem that I think we are only just beginning to recognise.
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