Thread: Number of bankrupt pensioners soars

and it's all coming your way America... I pray that you are prepared

Number of bankrupt pensioners soars

The number of retired bankrupts has jumped more than 160 per cent in the past five years, new research has disclosed.

By Myra Butterworth, Personal Finance Correspondent
Published: 8:00AM BST 04 Jul 2009

Numbers have increased due to more people entering retirement with unpaid debts, along with increased life expectancy and the recession.

Personal insolvencies reached 983 in 2004 and climbed each year to 2,595 in 2008, according to accountants Wilkins Kennedy.

It comes as the number of adults facing bankruptcy reaches the highest level since 1995.

The Ministry of Justice said the number of people who petitioned for bankruptcy rose by 29 per cent to 16,775 for the first three months of this year, compared to the same period a year earlier.

Anthony Cork, director at Wilkins Kennedy, said: "While the number of personal insolvencies has been climbing relentlessly, the finances of those aged over 65 are deteriorating much faster."

He blamed the property boom, saying people remortgaging their homes to withdraw cash resulted in growing number of pensioners being left with substantial mortgages.

And many pensioners with outstanding credit card debts taken on during the credit boom now find themselves unable to meet repayments when their incomes shrink back on retirement, he added.

Pensioners also rely on the return from savings, which has plunged towards zero percent as interest rates have been cut.

Mr Cork added: "Most people find that as they get older, it doesn't actually become easier financially. With the number of old people growing fast, elderly bankruptcy will become an even bigger issue if people don't plan early enough for their retirement."

Charities warned life has become a struggle for many pensioners due to the credit crisis.

Bryan Clover, of the grant-giving charity Elizabeth Finn Care - which has seen applications rise 250 per cent during the past decade - said: "Having worked hard all their lives, pensioners in this country deserve a decent standard of living, not the worry associated with not knowing if they can afford to buy food this weekend, or may have to face bankruptcy.

"Pensions rarely keep pace with rises in basic essentials such as heating and food, and running a car is rapidly becoming a luxury that few older people can afford. When geographic and social isolation are added to the equation, life in old age has become a struggle."

http://www.telegraph.co.uk/finance/pers ... soars.html

Just what Obama wants to happen!
He is knocking down people with money.