You’ve worked hard all your life and you deserve to retire worry free.
If you’re in your 50s or 60s and still dealing with debt, you’re not alone. We hear this worry a lot: “I’m close to retirement. Is it too late for me to get help?”
The good news is, it’s never too late to take control of your debts. Many of the people we support are approaching retirement age, and with the right advice, they’ve found solutions that give them stability and peace of mind.
Why more older people are struggling with debt?
The cost of living crisis has hit everyone, but older households are feeling it in unique ways. According to the Money and Pensions Service, over 1 in 3 people aged 55 and over still have unsecured debts such as credit cards or loans. UK Finance also reports that nearly 1 in 5 people over 65 are still paying off mortgages or loans.
We see this every day at Dexter Bell:
• People using credit cards to cover rising bills
• Parents supporting adult children financially while struggling themselves
• Homeowners worried about paying off mortgages before retirement
Debt at this stage of life isn’t unusual but it does need careful planning.
The impact of debt near retirement
Carrying debt into retirement can feel overwhelming. With income often dropping after you leave work, the fear of “never getting out” becomes very real.
We hear clients say:
• “I don’t want to leave this problem for my family.”
• “I thought I’d be free by now instead I feel trapped.”
• “What happens when my pension is all I have?”
Debt can affect more than your finances. It can impact mental health, relationships, and even your ability to enjoy the retirement you’ve worked hard for.
What are your options?
The right debt solution depends on your income, assets, and long-term goals. Here are the main ones we talk through with near-retiree clients:
• Debt Management Plan (DMP)
o Informal, flexible, and confidential
o One affordable monthly payment covering your unsecured debts
o Creditors are asked to freeze interest and charges
o Can be adjusted if your income changes
• Individual Voluntary Arrangement (IVA)
o A legally binding agreement, usually lasting 5–6 years
o After this, any remaining qualifying debt is written off
o Creditors cannot chase you during the IVA
o If suitable, we’ll package your case and pass it to one of our Insolvency Practitioner partners
• Debt Relief Order (DRO) or Bankruptcy
o For people with very low income, few assets, and debts under certain limits
o Clears debt after a fixed period (12 months for DRO)
o We’ll explain these carefully and, if suitable, signpost you to a charity or specialist organisation
The FCA bit (what you need to know)
It’s important to be clear:
• A DMP and IVA can affect you’re credit file.
• An IVA is legally binding, but if it fails, bankruptcy may follow.
• Fees apply to some solutions we’ll explain these in plain English before you decide.
• Free debt advice is also available from charities like StepChange and National Debtline.
Our role is to give you the facts, explain the risks, and help you make the right choice for your situation.
Our advice to near-retirees
If you’re worried about debt in your 50s or 60s, here’s what we want you to know:
• It’s never too late to get help, there are solutions for every stage of life. The sooner you reach out the easier it will be
• You don’t need to face this alone. We’ll handle creditors and paperwork for you, stay in your corner
• Debt doesn’t define you! Retirement can still be something to look forward to and you deserve it
We’ve seen countless clients in your shoes find a path forward. You deserve to enjoy this stage of life without the constant stress of debt.
