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bigger textPensioner debt
Figures released today claim that the UK's pensioners are £57bn in debt, with one in five still to pay off a mortgage. This makes for worrying reading, and suggests that the comfortable retirement many have dreamed of all their lives is becoming increasingly difficult to achieve.
With inflation continuing to rise, this problem is only going to get worse in the future, posing the question of what can be done to reduce this debt mountain. One solution might be to use the increasing levels of equity tied up in their homes, which stood at £1.2 trillion in January .
Homewise, lifetime lease provider to the over-60s, has already helped many of its customers to tackle outstanding debts through its pioneering Find & Afford solution. This is achieved through the provision of a lifetime lease, a common sense alternative to home ownership, which allows pensioners to move into a property at an average 40% discount against the full market value. The potential is therefore there for them to pay off outstanding debts using the money saved, and manage future outgoings as they can then live in this property for the rest of their life rent and mortgage free.
Mark Neal, managing director of Homewise, commented: "Excess debt can be a crippling burden at any age, but for pensioners who should be enjoying their retirement it hits even harder. Against this backdrop, an increasing number of pensioners are taking the option of moving home to clear debts and potentially free up extra cash to afford their retirement."
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