According to Wilkins Kennedy LLP, individual insolvencies were hitting the UK’s older generations increasingly hard.
The latest available data from the Insolvency Service shows that the 35-44 year old group has the largest number of individual insolvencies while 45-54 groups has gone up to 25% in 2011 up by 10 percent in a decade.
It says that the number of individual insolvencies for over 55 year olds increased between 2009 and 2011 while in other age groups it fell.
Wilkins Kennedy warned that it was older generations that were hit hardest by insolvency.
Anthony Cork, Partner at Wilkins Kennedy, says older generations feel the impact of insolvency much harder than other age groups. While those in their twenties or thirties have a chance to really ‘start again’ after entering insolvency, those in their fifties or sixties have much less time to rebuild themselves financially as they approach retirement.
There’s the time factor and, for those wanting to re-enter the jobs market, there’s the risk of age discrimination and potentially the need to re-skill.
Anthony Cork continues for a long time, the post-war generation were seen as having it all: ever-rising standards of living, affordable housing, and, throughout the 1990s and early 2000s, cheap credit.
However, in the aftermath of the financial crisis, things started to catch up with them. The cheap credit has been exhausted and jobs that were once ‘for life’ have become far less secure, while divorce rates amongst Baby Boomers has been jumping too. Loans, redundancy has started to bite, and the costs of contributing to more than one household were taking their toll. It’s going from Baby Boomer to bust.
Wilkins Kennedy is also concerned about the impact that rising insolvencies amongst older people will have on others.
Anthony Cork adds with increased numbers of insolvents approaching retirement government could have a big knock on effect for the welfare budget for younger generations who suddenly have to find means to financially support their parents or grandparents.
The experience of the Baby Boomers points out how important it is to have a plan for future while in the early stages of career. People do need to adopt a much more long-term view of their personal finances.
The 45-54 year old age group is now the second most common age bracket for insolvencies, with the fall in insolvencies in this group being far less sharp than in other groups.
Anthony Cork concludes saying that the overall level of individual insolvencies was starting to look downwards, and it was particularly true of younger generations.
However, for older generations, the number of individual insolvencies remains stubbornly high or is getting worse. Those that feel the pain of insolvency hardest are being hit the hardest.
The latest available data from the Insolvency Service shows that the 35-44 year old group has the largest number of individual insolvencies while 45-54 groups has gone up to 25% in 2011 up by 10 percent in a decade.
It says that the number of individual insolvencies for over 55 year olds increased between 2009 and 2011 while in other age groups it fell.
Wilkins Kennedy warned that it was older generations that were hit hardest by insolvency.
Anthony Cork, Partner at Wilkins Kennedy, says older generations feel the impact of insolvency much harder than other age groups. While those in their twenties or thirties have a chance to really ‘start again’ after entering insolvency, those in their fifties or sixties have much less time to rebuild themselves financially as they approach retirement.
There’s the time factor and, for those wanting to re-enter the jobs market, there’s the risk of age discrimination and potentially the need to re-skill.
Anthony Cork continues for a long time, the post-war generation were seen as having it all: ever-rising standards of living, affordable housing, and, throughout the 1990s and early 2000s, cheap credit.
However, in the aftermath of the financial crisis, things started to catch up with them. The cheap credit has been exhausted and jobs that were once ‘for life’ have become far less secure, while divorce rates amongst Baby Boomers has been jumping too. Loans, redundancy has started to bite, and the costs of contributing to more than one household were taking their toll. It’s going from Baby Boomer to bust.
Wilkins Kennedy is also concerned about the impact that rising insolvencies amongst older people will have on others.
Anthony Cork adds with increased numbers of insolvents approaching retirement government could have a big knock on effect for the welfare budget for younger generations who suddenly have to find means to financially support their parents or grandparents.
The experience of the Baby Boomers points out how important it is to have a plan for future while in the early stages of career. People do need to adopt a much more long-term view of their personal finances.
The 45-54 year old age group is now the second most common age bracket for insolvencies, with the fall in insolvencies in this group being far less sharp than in other groups.
Anthony Cork concludes saying that the overall level of individual insolvencies was starting to look downwards, and it was particularly true of younger generations.
However, for older generations, the number of individual insolvencies remains stubbornly high or is getting worse. Those that feel the pain of insolvency hardest are being hit the hardest.
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