The report found 62% of over 65s are worried about paying their winter fuel bills The number of people paying off debt as they enter retirement is rising, says a report from a campaigning group.
Consumer Focus Wales found people are deferring retirement to make ends meet.
It is calling on the Welsh Assembly Government to do more to avert what they call a “debt crisis previously unseen in retired people”.
A Welsh Assembly Government spokesman said it was already “working hard” to tackle pensioner poverty in Wales.
“It is imperative that action is taken now to prevent greater numbers of older people living a retirement of financial hardship and debt”
Maria Battle Consumer Focus Wales
“This report is a wake-up call to the generation thinking of retiring from work – and anyone who hopes to retire in the future,” says Maria Battle, director of Consumer Focus Wales.
“If younger people take the attitudes to debt into old age with them, we are likely to see levels of deprivation among older people soar.”
The report, Financing the Future, found many people in the 50 to 65 plus age group, who took part in the research, defined themselves as “managing on a day-to-day basis”.
They told researchers they expect the situation to become worse over the next few years due to the economic downturn, coupled with rising costs.
Some have put their retirement plans on hold and others say their planned pension pots have failed to live up to expectations.
To cope, the report found some are cutting back on grocery bills while others are using doorstep lenders.
Megan 59, from Carmarthenshire, said she has been finding it increasing hard to cope over the last few years.
She gave up work to care for her husband after an accident 25 years ago, but rising costs have made the last few years more difficult to cope on £200 a month in benefits.
“When you take out £120 for council tax and rent, you’ve got about £70-£80 to run the car, food, electric, gas, heating, everything,” she said.
Finding money in an emergency can be a real problem, without any savings.
When her cooker broke, she tried to manage without one, but in the end borrowed money from a doorstep lender to buy a new one.
“I’d been without it for a couple of months and I couldn’t cope anymore,” she said.
“You have to pay back so much – if I had to use it again I would, but you borrow £200 and paying back £30 a week, you just can’t do it, then you fall behind.”
The report highlights three areas which older people say cause them the greatest problems – fuel bills, food and council tax.
Consumer Focus Wales wants the assembly government, energy providers and lenders to offer financial advice and education to help people plan and budget better in later life.
‘Committed’
A spokesperson for the assembly government said they are determined to tackle pensioner poverty in Wales.
The spokesperson said they are working hard so that people can access affordable credit through investment in credit unions and registered social landlords.
“We have provided funding to councils to help increase the take up of council tax and housing benefits to ease the financial pressure on older people.
“We’ve worked with the Financial Services Authority to develop guides to help them plan for retirement. In addition to direct support, we also remain committed to free bus passes in Wales which help older people stay independent.”
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