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12-Sep-08 11:30 [Pensions]
Two in five 'use lump sum to clear debt' Recent research has revealed that two in five retirees have used their pension lump sum in order to clear debts or pay off their mortgage.
In a study carried out by Scottish Widows, one in six of those interviewed had used the lump sum to pay off their mortgage while a further quarter were clearing money owed to other outlets.
The research added that the rising cost of living had contributed heavily to the rising trend, with many unable to pay into pensions due to bills and half of those interviewed still not putting enough money into savings.
Ian Naismith, commenting on his company's research, said: "It's a shame that some people need to spend their hard earned savings on paying off a mortgage or clearing debts.
"Retirement should be about enjoying life."
It was announced this week by the Scottish government that £32 million would be provided to cover the cost of higher lump-sum payments for police and firefighters.
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