Aviva: A Financial Adviser can help get your debts under control
30th May 2023
Approximately two-thirds of UK citizens admit having debts, which financial advisers could help alleviate, allowing them to focus on retirement.
According to Aviva, 67% carry burdensome debts, with over five million adults (9%) unaware of how much they actually owe. For those aged 45 and above, this figure rises to 16%.
The primary debts include credit/store cards (32%), personal loans (16%), overdrafts (15%), and unpaid bills (10%). Debt significantly impacts retirement plans and financial security, leading to stress and reduced income.
In 2023, 52% of 45-54-year-olds experienced increased debt compared to 25% in 2021. About 21% expect to carry debt into retirement.
Aviva found that 38% reduced non-essential spending, while 21% worked overtime or took on a second job. During the past year, 31% faced unexpected bills, often related to Covid's impact on living costs. Although 57% had emergency savings, only 24% used them for unexpected expenses, while 19% used credit cards and 5% tapped into pensions. Rising interest rates may prompt individuals to reconsider retirement plans.
Taking proactive steps like debt consolidation, paying off high-interest loans, reducing expenses, and working with financial advisers can make a significant difference. Planning ahead and ensuring sufficient income for retirement, considering existing debt, is crucial.
The Aviva research was conducted by Censuswide.
