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LATER LIFE DEBT.
How partnership working can help.
Dealing with financial difficulties is tough for anyone
– and for Britain’s growing population of older people,
addressing debt problems can be particularly hard.
A combination of low savings interest rates and
rising living costs have left many households feeling increasingly
squeezed and under pressure.
And with many more of us living well for longer, it’s an issue that
“The evidence shows that debt problems faced by older people
tend to be quite different from those typically found in the wider
population. For this group it’s often less about credit cards and
loans and more about everyday expenditure – falling behind on
the rent, struggling to afford heating or facing council tax arrears.
“This can be prompted by a combination of factors, including
living on a low fixed income or juggling caring responsibilities.
isn’t going to go away anytime soon. Leading charity, Age UK, say
it has seen an increase in the number of older people seeking help
for debt-related concerns in the past few years.
Here Ashley Morgan, Age UK’s Senior Advice Support Officer,
explains the challenges facing many of their clients and suggests
ways debt advisors and charities like his can come together to
“Age, health or employment status – being retired or away from
the workplace for a while – might also prevent older people
from extending their income by working more or taking on a
second job.
“Creditors may be reluctant to offer certain kinds of longer-term
offer help. He says: “In recent years we’ve seen a real increase in
repayment plans too or a lender may refuse to extend a
the number of older people coming to us for advice on a wide
mortgage term.
range of debt-related issues.
“Many of the 168 local Age UK partners in England (as well as
“Moving into later life with debt can be a highly emotional as well
as a practical issue – and money worries can cause real and
partners in Wales, Northern Ireland and Scotland) have reported
extreme anxiety. Many people are reluctant to talk about their
a rise in enquiries from people wanting to know more about how
financial problems and ask for help but there is a wealth of free
to deal with debt and boost their income. There are many reasons
unbiased advice and support available for those that do.
for this growth, including rising living costs in recent years,
unemployment, more people entering retirement in debt, and low
annuity rates.
“And with big changes happening in the welfare system, we can
help people find their way through what can be a complex or
confusing system.
“Because income is largely fixed for many older people, a small
financial hiccup such as a broken washing machine can quickly
become unmanageable or escalate into a crisis.
“We carried out some research in partnership with The International
Longevity Centre last year which showed that moving into
problem debt in later life can result in a decreased quality of life,
and is linked to depression and relationship breakdown.
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UKAR ARENA SUMMER 2014
“Many older people are missing out on up to £5 billion of money
benefits each year – everything from help with health costs to
heating and rent – which, if claimed, could make a huge
difference to their quality of life.
“We always assess cases on an individual basis. So it may be an
emergency – where someone is facing eviction for example and