Key Retirement Solutions report shows UK pensioners are heading towards a �98 billion mortgage debt

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) April 3, 2007 -- One in four people in, or nearing, retirement could be taking with them mortgage debts worth �98 billion collectively - an average of �31,000 per head � reveals a report from Key Retirement Solutions, the UK�s largest independent equity release specialist.

The analysis, based on 4,620 over-60s who released equity in their home in 2006, found that the average mortgage debt among those aged 60-64 years is �23,512 which rises to �29,000 between the ages of 65-69 years. Worryingly, this amount increases again to �37,000 each in the over 70s group, with the over 70�s mortgage debt 27.5 per cent higher than in any other age group.

Dean Mirfin, Business Development Director at Key Retirement Solutions, said: �We are seeing increasing numbers of over-60�s coming to us with mortgage debt that they are struggling to manage and looking for a way to ease the burden of debt in retirement. With the rising trend in higher levels of borrowing, and fewer people saving for retirement, this could be a time-bomb waiting to hit the next few generations of pensioners even harder than we�re seeing now. Whilst this analysis is based upon those who have released equity from their home, if they are only partly reflective of pensioners as a whole, it has to be of huge concern to us all.�

Chris Tapp, Associate Director of charity Credit Action, comments on Key�s findings: �Unfortunately, in this day and age, someone�s hair turning grey is not an indicator of their bank balance being any less in the red. Key Retirement Solutions� findings demonstrate the very difficult situation a sizable number of pensioners find themselves in, trying to cope with debt repayments as well as rising living costs. At Credit Action we are also concerned that this is a trend which is only likely to get worse as we see people borrowing more, borrowing for longer and saving less in a desperate attempt to get a foot onto the housing ladder.�

Struggling to make ends meet
Official statistics show that over half of the British pensioner population live on �15,000* or less each year, with 1.4 million pensioners living on an annual income of �5,000* or less. After paying for council tax and utility bills, this leaves the worse off with the equivalent of just �257 per month. Key Retirement Solutions� own analysis has found that the cost to a pensioner to service outstanding mortgage debt is �215 a month and this could leave the most vulnerable with just �42 left to live on.

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Notes to editors:

#According to the Office of National Statistics, the total UK pensioner population numbers based on latest population figures (2005) is 18.7 million. According to Key Retirement Solutions� Debt Report 47% of pensioners have debt (8,789,000), of which 36% is mortgage debt (3,164,040) multiplied by the average mortgage debt of �31,000 = 98,085,240,000.

* Sourced from Credit Action February 2007