Looking at the bank balance, let alone a credit card bill or mortgage statement, is enough to throw many middle-aged people into a crisis. Money just seems to disappear.
Around six million over-50s owe money on credit cards and loans. New research from Saga says that nearly six million over-50s owe money over and above their mortgage, with an average debt of £12,000. Of those who are in debt, 60{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} said they could afford to repay their debts and still live comfortably, but almost a third (29{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34}) are struggling with their repayments. SunLife found that as a percentage of income, those aged 45-54 have more than half of their income allocated to fixed costs.
Credit cards, overdrafts, personal loans, mortgages, student debts, store cards … many middle-aged people have racked up some serious debt. “Many people experience significant money problems in middle age, when pressure on finances can often come from both directions in the family tree,” says Jane Tully, a spokeswoman for the Money Advice Trust.
It is not uncommon for employees in their late 40s and 50s to find themselves at risk of redundancy, says Kerry Garcia, partner at law firm Stevens & Bolton: “It often takes employees in this age bracket longer to find another job at commensurate pay, which is stressful when their outgoings are higher, too.” And during your 40s you are more likely to get divorced, according to the Office for National Statistics, which means any assets you do have may be split.
No wonder, then, that an ONS wellbeing survey issued earlier this year found that “anxiety ratings” peaked between 45 and 59. However, even if you have hit a midlife financial crisis, there are ways to turn it round. “It’s not too late,” says Philippa Gee of Philippa Gee Wealth Management. “But this could be your last real chance to change things”. Jane Tully says “Seeking free advice is the first step”.
Source: The Guardian & bt.com
