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Managing debt in retirement

Additional protections and unclaimed benefits mean older people often have more options than they realise.

Debts for Pensioners3 min readReviewed July 2026

Pension Credit is the single most under-claimed benefit in the UK. If you're over State Pension age and on a modest income, it can top your income up and unlock help with rent, council tax, energy and a free TV Licence (age 75+).

Bankruptcy, IVAs and DROs all remain available in retirement. The right choice depends on assets (particularly your home), pension income and whether creditors are pushing enforcement.

Watch for equity release adverts that promise to 'wipe out debt'. It can be the right answer for some households, but it's expensive, complex and permanent. Independent advice is essential before signing anything.

Guidance, not personalised helpThis article is written to inform. It isn't personalised debt or legal advice — a Debt Compass adviser will discuss your options and eligibility with you before you choose a route.