New research from insurer Aviva has shown that two fifths of ‘pre-retirement’ people aged 55 and over, are failing to accrue any savings and entering retirement with substantial debt problems.
Non- mortgage debts do not tend to be a problem for the pre-retirement group and the average household does not tend to enter retirement with debts from credit cards, overdrafts or loans.
Northern Rock’s charitable division has announced plans to pay for a team of personal debt counsellors to help those who have been severely affected by debt problems during the recession.
The Northern Rock Foundation has donated £1.5 million to the North East and Cumbria Citizens Advice Bureau (CAB), providing help for around 8,000 people over the next two years.
A recent report from the CAB showed a significant increase in the number of people appealing for help after struggling with their debt problems in recent months.
The report showed that the number of people struggling with debt issues rose by 17% last year, including a 35% increase in bankruptcy queries and a 23% hike in fuel debt inquiries.
The CAB grant will provide funding to hire 12 counsellors who will be able to offer people face-to-face help and advice regarding their debt problems.
Penny Wilkinson, Northern Rock Foundation’s chief executive, said: “January is a particularly difficult time of year for people with debt problems and in the current financial climate we know that there will be a lot of families in the North East and Cumbria struggling to make ends meet.”
“Our new programme will enable people to get help and advice quickly, giving a practical response to the rising debt problem in our region.” She added.
The Northern Rock Foundation was set up in 1997 but is independent from the Northern Rock bank and is run by its own board of trustees.
Citizen’s Advice Scotland has raised concern over mounting debt problems, with consumer debt being the biggest issue that advice was sought for during the past year.
The Citizen’s Advice annual report showed a 14 per cent increase in debt related issues over the past year. Debt related enquiries made up 30 per cent of 976,989 enquiries handled by advisors during 2008-9.
Despite recent talk of ‘green shoots’ in the economy, Citizen’s Advice Scotland warn that the outlook is bleak for many. There was