Over the last three years, the UK’s personal bankruptcy rate has been on a roller-coaster-style up and down ride. Insolvencies and personal finance issues have been a recurring issue both for the nation’s public figures and its families, with hundreds of thousands of professionals losing their financial footing due to the loss of a previous position, failed investments, or lost personal assets.
But one group hasn’t been covered by the press in detail – the UK’s large pensioner population – and for many of those affected by the country’s failing finances, that’s a major issue. Pensioners in the United Kingdom are one of the fastest-growing bankruptcy groups, with debt levels amongst almost all of the country’s retirees growing at staggering and somewhat financially dangerous rates.
An average of three pensioners (adults aged over 64-years-old) went bankrupt per ten-thousand in 2009 and 2010. While this seems fairly trivial compared to the ten-fold higher rate for adults aged between thirty-five and forty, it remains an issue. In past recessions, pensioners have been affected at a significantly lower level than working professionals, largely due to their greater assets.
While personal bankruptcy is officially decreasing, the rise in bankruptcies in particular age groups and demographics remains a concern. Business bankruptcy levels have also remained fairly steady, leading many to suggest that the level of employment seen in Britain may not improve as rapidly as many expect. For pensioners, this could also increase the risk of failed long-term investments.
Experts have suggested that pensioners – and people of all ages, in fact – should check their savings and spending regularly to ensure that they’re not stretching their finances too thin. While the overall financial patterns in Britain suggest growth and an eventual return to health, smaller hiccups such as these serve as a reminder that smaller groups can often experience unusual financial circumstances.