Why are so many pensioners going bankrupt?

Jan. 21, 2011 - PRLog -- The Insolvency Service has released research revealing that pensioners are
six times more likely to go bankrupt than they were just a decade ago.

Among women aged 65 or over the rate has risen ten-fold during the same
period. Between 2000 and 2009 the percentage of bankrupt pensioners
increased from 2 per cent to 4 per cent of total bankrupts.

The number of bankrupt individuals in this age group has increased at a 50
per cent faster rate than other age groups.

Una Farrell, spokeswoman for the Consumer Credit Counselling Service, said:
"Dealing with debt is particularly hard as you get older, as you are likely
to have limited opportunities to increase your income."

Figures have risen due to an increase in the number of people entering
retirement with unpaid debts, along with increased life expectancy and the
recession.

Personal insolvencies across all age ranges reached 983 in 2004 and climbed
each year to reach 2,595 in 2008, according to accountants Wilkins Kennedy.
It comes as the number of adults facing bankruptcy reaches the highest
levels since 1995. Anthony Cork - director of Wilkins Kennedy - said: "While
the number of personal insolvencies has been climbing relentlessly, the
finances of those aged over 65 are deteriorating much faster."

He blamed the property boom specifically, saying people remortgaging their homes to withdraw cash resulted in a growing number of pensioners being left with substantial mortgages to repay after they had retired.

However, an advisory officer from the Civil Service Pensioners' Alliance - which has over 60,000 members aged 65 and over - said that during the eight years in which he'd worked there he had yet to receive a single query from a pensioner with regards to bankruptcy. Consumer experts say this may suggest that pensioners in financial difficulty could be unaware of the assistance available to them.

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Griffin and King are a leading firm of Insolvency Practitioners within the West Midlands with offices covering Dorset, Hampshire, Shropshire and Mid Wales. We are licensed by The Institute of Chartered Accountants in England & Wales. At Griffin & King we understand. With over 25 years experience we have helped businesses and individuals find solutions to their financial problems. We believe there really is "Life after Debt!"