More people are borrowing for debt consolidation in retirement

New research by Hodge has found that more people are borrowing into their retirement to help out with debt consolidation and meet day to day living costs.

The research found that over two thirds of brokers say lending up to and into retirement in the UK is changing, with greater numbers borrowing into their retirement to ease a combination of debt consolidation and day to day living costs.

Most respondents also said fewer people borrowing into later life today are doing so for aspirational reasons, such as to pay for a holiday or a car, with many looking to subsidise insufficient pension provisions or to help out with daily living costs instead.

As a result, 70% of brokers agree that they need more in the way of education when looking to support their customers lending into retirement. It’s also been interesting to see that 90% of intermediaries feel their customers require a greater level of insight with regards to the solutions available to them too.

Andrea Roberts, National Account Manager at Hodge said “What’s crucial to note about this feedback is that borrowing into retirement is becoming far less about the ‘nice to haves’ and much more focused on meeting financial liabilities brought about by pension or endowment shortfalls, outstanding debts, rises in the cost of living, and more.

“Put simply, borrowing into a customer’s retirement is becoming more of a necessity for many. It’s really important to us, therefore, as specialists in this area of the market, that we continue talking and listening to our brokers, so that we in turn can continue supporting intermediaries and their customers in the moments that matter,”