IVA & Debt Consolidation Advice

AXA experiment shows that UK adults expect to be in debt in retirement, using credit to fund an active lifestyle.

An increasing number of pensioners are expected to be in debt in retirement, a new report has revealed.

According to AXA Avenue's third quarter report, which followed UK adults on a Living on State Pension Challenge, all but one household failed to stay within their budget.

Many do not anticipate future problems and almost half (45 per cent) are expecting to be using credit cards in their retirement.

Furthermore, only one in four adults (26 per cent) believes that they will not be in any sort of debt when they retire.

Many are intending to use credit to facilitate retirement activities such as going on holiday and even having plastic surgery.

"The Living on a State Pension experiment has produced startling results," said Saran Allott Davet, AXA Avenue's resident independent financial adviser.

"The majority of those that took part have had a real wake up call and are much more aware of the need to plan."

The 26 participants in the study, which has highlighted the changing attitude to debt among UK adults, were aged between 30 and 50-years-old.