Increase in debt levels for those approaching or in retirement

New data has revealed a significant increase in debt levels for those approaching or in retirement, with the average debt for ‘baby boomers’ climbing by over 11% in the third quarter of 2024.

In comparison to the previous year, boomers’ average debt levels now stand at an average of £19,571. The average debt levels across other age groups has remained relatively steady, by comparison.

The surge in boomer debt is outpacing younger generations like millennials and Gen Z which have seen more modest increases of 4% and 2% respectively.

Winter fuel payments, which many retirees rely on to cover heating costs, have not kept pace with soaring energy prices. The current Energy Price Cap (EPC), which took effect on October 1st, sets the average annual bill at £1,717 – up by 10% compared to earlier in the year.

Personal finance expert Maxine McCreadie at UK Debt Expert said “Many baby boomers, especially those retired or nearing retirement, are seeing their disposable income shrink due to the rising cost of everyday essentials and energy bills.

“While younger generations face their own financial pressures, it’s boomers who are most vulnerable to accumulating significant debt this winter, with limited income sources to offset these expenses.”