Friday, August 24, 2007

Paying back debt into retirement

We all instinctively know that it is daft talking about a ‘generation’, since any large group of people fragments into zillions of sub groups. If we want to justify an argument we can talk abut the 50-plus as a bunch of property rich people set on enjoying their retirement consuming their kid’s inheritance.

You then encounter the figures that were published this week by Scottish Widows in their 2007 UK Pensions Report.
Grandparents in debt to tune of £57 billion
1 in 5 retired homeowners (1.1 million) still have a mortgage
Average outstanding mortgage debt is £38,000
1 in 3 have carried over credit card or personal loan debt for the last 3 months
Average outstanding non mortgage debt is £5,900
1 in 12 retirees have financially dependent children
The study also shows that many of those aged 50 to 59 are a long way from owning their own home. 42% still have a mortgage with an average debt of £54,300.

So there you are. Not a very rosy picture for a large sway of the UK’s 50/60-plus.

So are your customers in the this group of the Charmed Generation, with lots of dosh? I hope you know.

A word about Scottish Widows. How encouraging to encounter a company that ensures it has a press release on its Web site when the news is breaking. This report was featured on the BBC news. Secondly, to encounter a PR department that responds to e-mails within 30 minutes (even at 8.00 in the morning). Well done. Dick Stroud

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