Posted on January 6th, 2011 | Categories - News
Bankruptcy is rising amongst the elderly.
More people who are passed the working age are becoming insolvent.
The number of pensioners becoming bankrupt is growing, causing concern amongst campaigners and experts.
Figures revealed by the UK Insolvency Service showed that bankruptcy has risen in the past decade with more 35 to 44-year-olds affected than any other age group. However, they also highlighted that pensioners are the fastest growing group of bankrupts according to their statistics.
Una Farrell, of the Consumer Credit Counselling Service (CCCS) said: “Dealing with debt is particularly hard as you get older as you are likely to have limited opportunities to increase your income”.
She continued: “The average debt for a CCCS client over the age of 55 is £25,826 compared with £24,274 for CCCS clients overall, while the average annual income of a CCCS client over the age of 55 is £12,920, significantly lower than £17,316 for CCCS clients overall. It is very difficult to be struggling financially at a time in your life when you had expected to be more settled”.
The report also showed that more women are going bankrupt than ever before. In 2000 just under a third of bankrupts were female but by 2009 the figure went up to 40%, which is more than a 10% increase.
The current average age of a bankrupt person was found to be 41.
Stephen Speed, chief executive of the Insolvency Service, said: “Prevention is much better than cure as far as personal finances are concerned. Review your personal finances frequently and make sure you are not taking on debt that you cannot afford to repay”.