More than one million pensioners are facing a bleak financial future, research shows today.


Pensioners' average credit card and personal loan debt has risen by 42 per cent in the past year


One in five is yet to pay off a mortgage and one in three is racking up average credit and personal debt of £5,900.

With many people buying a home later in life and state pensions not keeping pace with inflation, there are fears the problem will only get worse.

A report from Scottish Widows paints a worrying picture.

The total debt of those over 65 has hit £57 billion, according to the investment company, while pensioners' average credit card and personal loan debt has risen by 42 per cent in the past year.

Kate Jopling, of the charity Help the Aged, called the figures "worrying".

"With one in five retired homeowners still paying a mortgage and one in five pensioners living in poverty, the future looks pretty bleak."

The data from Scottish Widows is the latest proof that the disparity in wealth between the UK's seven million pensioners has never been wider.

Many have retired with a comfortable company pension and no mortgage, but some are struggling to keep their heads above water.

Earlier this year, Help the Aged's annual report found that 20 per cent of older people avoided heating their bedroom, living room or bathroom, because of money concerns.

Inflation has hit pensioners particularly hard, eating into their savings and landing them with escalating weekly bills.

Research by Capital Economics for The Daily Telegraph shows that pensioners were hit by an inflation rate of nine per cent last year - more than double the official rate.

In recent months that figure has come down, but the average pension has failed to keep pace with rising living costs.

Ian Naismith, the head of pensions at Scottish Widows, said: "With more and more people taking out mortgages later, and paying them off later, we are seeing many people turning to the equity in their home as a method of providing income in retirement.

"The knock-on effect of getting on the housing ladder later is that money that could have been put into a pension is being used on monthly mortgage payments."

While the decade-long house price boom should have benefited homeowners now approaching retirement, many have been forced to use the value of their homes to help their children get on the property ladder.

Nigel Waterson, the shadow pensions minister, said: "Two million people are living in official poverty under this Government, but many more are struggling to make ends meet and at a time of life when they should be free from financial worry."

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