Two thirds (67%) of UK adults admit to having debt that's weighing them down, according to a new study from Aviva.

Almost one in 10 (9%), or the equivalent of just over five million adults in the UK, said they “haven’t got a clue” how much they owe in outstanding debts, a figure that rises to more than one in six (16%) of those aged 45 and over.

Overall, the research found that 15% of people feel their debt is out of control or they have no way of paying it off. This figure rises to 18% of over those aged between 45 and 54, while 11% of over-55s say they are also struggling.

Aviva found that the most common form of debt (32%) is credit or store card debt – for 30% of over-55s – and this was followed by 16% who have personal loans and 15% who have overdrafts.

Another 10% said they have unpaid household or utility bills while 11% of the over-55 age group have mortgage debt in the final decade or so before retirement.

“Interest rates have risen to levels we haven’t seen since 2008 – and are expected to rise further,” said head of savings and retirement at Aviva, Alistair McQueen. “The cost of debt is now centre stage, and millions may be having to rethink their retirement plans.

“Starting to think and plan further ahead as early as possible is a small step that can make a big difference in the long-term. Individuals can take some positive actions to reduce their debt before entering retirement, such as consolidating their debt, paying off high-interest loans or switching to a cheaper rate, alongside reducing unnecessary expenses or taking out a debt management plan.

“Also, if appropriate, people could work with a financial adviser to create a full retirement plan that takes their debt into account and ensures that they have enough income to cover their expenses and enjoy their retirement years.”

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