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Bankruptcy Growing At Fastest Rate Among Pensioners

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http://www.telegraph.co.uk/finance/personalfinance/8239121/Bankruptcy-growing-at-fastest-rate-among-pensioners.html

Levels of bankruptcy among men and women aged over 65 are the lowest in Britain, but the rate at which numbers have increased has shocked observers, having risen six times in a decade and at a 50 per cent faster rate than other age groups.

The analysis by The Insolvency Service found that among women aged over 65, the rate of bankruptcy has grown even more sharply, more than 10 times between 2000 and 2009 and it is 43 times higher in London.

The average age of someone who is bankrupt is 41, which is close to the average age of the population.

Charities described the increases as “shocking”, saying the rising cost of essential bills is hitting households hard.

Una Farrell, from the Consumer Credit Counselling Service, said: “Dealing with debt is particularly hard as you get older as you are likely to have limited opportunities to increase your income. The people we work with who are aged 55 and over, have on average, higher debt levels but lower incomes than all age groups.

“The average debt for a CCCS client over the age of 55 is £25,826 compared to £24,274 for all age groups, while the average annual income of a CCCS client over the age of 55 is £12,920, significantly lower than £17,316 for everyone else.

“It is very difficult to be struggling financially at a time in your life when you had expected to be more settled.”

Some interesting figures here, still things can only get better....

Amazing stats for London and that's supposedly where the money is, living costs are just insane in this country.

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Amazing stats for London and that's supposedly where the money is, living costs are just insane in this country.

I think London is only where the money is when you are employed. It's a money sink if you are unemployed or on a fixed income.

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This article contains the some of the data people were saying was missing from the other telegraph article (released the day after).

However, the data is not perfect.

In depth data can be found here;

http://www.insolvency.gov.uk/otherinformation/statistics/201011/index.htm

Yet if you run a few calculations through it, (1 in 311 insolvent in the past year, of whom there was 140k-ish, the population of the UK turns out to be about 46 million).

So I wonder how they calculate the population?

Those able to take on debt I suppose?

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This article contains the some of the data people were saying was missing from the other telegraph article (released the day after).

However, the data is not perfect.

In depth data can be found here;

http://www.insolvenc...01011/index.htm

Yet if you run a few calculations through it, (1 in 311 insolvent in the past year, of whom there was 140k-ish, the population of the UK turns out to be about 46 million).

So I wonder how they calculate the population?

Those able to take on debt I suppose?

The population over 18, as legally only over 18s can be insolvent...

(The current adult population estimate from ONS is 46m)

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The population over 18, as legally only over 18s can be insolvent...

(The current adult population estimate from ONS is 46m)

That would make sense.and is confirmed by the figures.

So assuming the insolvency rate remains high as it currently is @ 1 in 311 people per year. And average life expectancy is about 80. Then we could expect 62/311 to become insolvent in their lifetime. Some 1 in 5 people.

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That would make sense.and is confirmed by the figures.

So assuming the insolvency rate remains high as it currently is @ 1 in 311 people per year. And average life expectancy is about 80. Then we could expect 62/311 to become insolvent in their lifetime. Some 1 in 5 people.

That's a scary thought. Considering the current economic climate 1 in 5 would be a bit of a let off.

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Im surpised at OAP's going bankrupt. Yet the old stereotype of doddery old people under blankets walking with a zimmer frame doesn't exist much anymore. Curing excessive spending habits will not instantly stop once retirement age has been reached.

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Im surpised at OAP's going bankrupt. Yet the old stereotype of doddery old people under blankets walking with a zimmer frame doesn't exist much anymore. Curing excessive spending habits will not instantly stop once retirement age has been reached.

Get used to it, with current monetary policy it could come to all but the most solvent.

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Im surpised at OAP's going bankrupt. Yet the old stereotype of doddery old people under blankets walking with a zimmer frame doesn't seem to exist much anymore. Curing excessive spending habits will not instantly stop once retirement age has been reached.

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It's obvious why they are in so much debt.

They bought houses for 'their retirement' which are now worth less than when they got them.

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what surprises me is that it only takes £25k to send them under.

Small fixed income, possibly don't own the house (or don't own it outright, due to MEW / remortgaging) and the "bank of mum and dad" has been 6 feet under for a decade.

So no source of additional money to bail them out...

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Really all this is to be expected when the policy is to shaft the prudent and (try) and save the indebted.

Negative interest rates falling property values are a pensioners worst nightmare.

My personal plans took a hit when I worked abroad and my income from my savings dived thank goodness I was not retired.

This year is going to be awful you can just feel it, recessions are caused by the price of business just getting ahead of itself or just plain too expensive (rents, property prices, bills, tax, transport costs etc). This seems to be reaching a Zenith where even the country is going to try and run as much inflation and as much debt as it can to keep people in as much debt (with resulting assets remaining inflated) as possible.

It has to crack this year.

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Really all this is to be expected when the policy is to shaft the prudent and (try) and save the indebted.

Negative interest rates falling property values are a pensioners worst nightmare.

My personal plans took a hit when I worked abroad and my income from my savings dived thank goodness I was not retired.

This year is going to be awful you can just feel it, recessions are caused by the price of business just getting ahead of itself or just plain too expensive (rents, property prices, bills, tax, transport costs etc). This seems to be reaching a Zenith where even the country is going to try and run as much inflation and as much debt as it can to keep people in as much debt (with resulting assets remaining inflated) as possible.

It has to crack this year.

Well if there are few people working, supporting many people who are idle, then supply is restricted to what the few can produce. Restrict supply and prices rise. The market rations out what is produced amongst the people.

We have more and more people in this country not working. The few that remain in the private sector will be taxed harder and harder, forcing them out of the legitimate economy if they have a choice, until the government sees sense, and cuts its own expenditure to relieve the burden on the gainfully employed. If they dont do this, the state itself will fail. Those who are dependent on the state are going to face extreme poverty if they are not able to change their state to one where they can work.

I see much greater pain ahead for pensioners reliant on the state.

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Well if there are few people working, supporting many people who are idle, then supply is restricted to what the few can produce. Restrict supply and prices rise. The market rations out what is produced amongst the people.

We have more and more people in this country not working. The few that remain in the private sector will be taxed harder and harder, forcing them out of the legitimate economy if they have a choice, until the government sees sense, and cuts its own expenditure to relieve the burden on the gainfully employed. If they dont do this, the state itself will fail. Those who are dependent on the state are going to face extreme poverty if they are not able to change their state to one where they can work.

I see much greater pain ahead for pensioners reliant on the state.

I don't think it's all bad news.

If interest rates rise at least they can keep up with inflation a bit more , the current interest rates are an absolute joke.

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I don't think it's all bad news.

If interest rates rise at least they can keep up with inflation a bit more , the current interest rates are an absolute joke.

In some ways interest rates are a bit of a diversion. The amount of output of a nation is related to the number of people working. If we all sat down on our backsides and did nothing, then nothing would be produced. The more that work, the more that is produced, and the cheaper that what is produced becomes.

Rising interest rates will just reallocate monies from those with loans to those with savings accounts. What it wont do is increase the amount of stuff that is produced.

The only way to reduce the price of something is to increase supply of it, or reduce demand for it. Of course rising prices only matter if we want what is sold, so what we really want is more of the stuff. At the moment the government are discouraging honest production by taxing the life out of it, allowing much of what is produced to be stolen by fraud, and offering huge benefits for those not producing.

I dont see a lot from this present government to think that any of this is going to change.

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Small fixed income, possibly don't own the house (or don't own it outright, due to MEW / remortgaging) and the "bank of mum and dad" has been 6 feet under for a decade.

So no source of additional money to bail them out...

I wonder if MEW for BOMAD isn't the cause of a lot of this.

I wonder then if there is any recourse for the banks to come after the properties of the sons / daughters to make up the loss?

It wouldn't surprise me, but it would bring a smile to my face.

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Small fixed income, possibly don't own the house (or don't own it outright, due to MEW / remortgaging) and the "bank of mum and dad" has been 6 feet under for a decade.

So no source of additional money to bail them out...

Yes, also if you have no occupational pension to speak of and have to now live on the basic state pension so borrowed to fund your lifestyle when you could....what alternative is there? ;)

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It's obvious why they are in so much debt.

They bought houses for 'their retirement' which are now worth less than when they got them.

I disagree with that slightly. Perhaps someone could offer some information on this. Did any of the last booms other than the one we have just had, harbour a high number of BTL landlords on the back of high property prices? Yoy know, in the expectation that they would go higher. :lol:

I'm young so wouldn't know, I am under the impression that BTL to the extent we have seen has only been a product of boom we just had.

For BorrowTL now, I think most won't reach retirement age before they become insolvant due to falling rents and higher interest rates we will see.

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I wonder if MEW for BOMAD isn't the cause of a lot of this.

I wonder then if there is any recourse for the banks to come after the properties of the sons / daughters to make up the loss?

It wouldn't surprise me, but it would bring a smile to my face.

I doubt that there is, although depending on how the money was gifted to their kids the taxman might take an interest. However I think that the tax is payable by the person who gifted, not the recipient, so if they are already bankrupt ...

It does look like the chickens are coming home to roost for those who foolishly bailed out/subsidised adult children. That's two generations bankrupted by expensive property and out of control spending habits. Nice going, British public!

Will their kids extend the same sort of philanthropy to their parents I wonder? (Assuming of course that they are even in a financial position to do so, because if they required so much cash support as adults then they probably aren't the sharpest financial knives in the drawer.)

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  • 297 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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