When planning a life of retirement, insolvency is the last thing on your mind but a record number of pensioners entering retirement in 2007 had debt problems and experienced the problem of insolvency.
After decades of working, retirement is a time when pensioners should be able to relax and enjoy their new life away from work. Unfortunately, however, and for a number of contributory reasons, insolvency has impacted upon those entering the twilight of their lives with record numbers of pensioners experiencing insolvency in 2007.
Insolvency – The Effects On Those In Retirement
The statistics regarding insolvency, bankruptcy and its effects on pensioners makes shocking reading. In 2002, there were 900 hundred instances of pensioners declaring insolvency (which was 3% of all recorded insolvencies that year). In 2007, however, there were 7,900 pensioners filing for insolvency, which represented not only a vast increase but also accounted for 7% of all insolvency cases.
Insolvency – Playing The Blame Game
There are many issues that can be attributed to why there has been such a vast increase in the number of pensioners experiencing insolvency and understanding the causes will help to find the solutions. Some of the primary contributing factors to the increase of insolvency in old age include:
• Increased Life Expectancy – People living longer often means they accumulate more debt over their lifetime which, in turn, leads to more experiencing insolvency in old age.
• Rising Cost Of Living – Things are much more expensive in the modern age and pensioners may not be able to successfully manage their finances. Many will experience insolvency as a result.
• Easy Acquisition Of Credit – Irresponsible lending by banks is another factor. Those in retirement no longer have such a regular source of credit but can still obtain credit readily. However, repayments are often difficult for pensioners to cover and they will have to apply for insolvency to pay back their growing debts.
Speak To Varden Nuttall About Insolvency
Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0800 031 9802 or fill in our online enquiry form.