A third of over-55s face retirement in the red with thousands of pounds of debt

It said 35.7 per cent of older workers and pensioners had outstanding unsecured debts that in total add up to £66billion.

This works out at £11,106 per head  -  not including mortgage debt, which for over-55s is on average £37,316.

More than a third of over-55s are facing retirement saddled with thousands of pounds of debt, a study has found. (Posed by models)

The figures suggest the debt problem for over-55s is getting worse.

Two years ago, only 31.8 per cent had unsecured debts, and the average owed was £10,181.

Unsecured debt also increases with age, according to the study which was carried out by a company that helps people release the equity in their home.

It found that the total unsecured debt for the 55-59 age group was more than £2.5billion.

But for over-70s that figure rocketed to more than £22billion - an average of £10,659 per head, with each person facing a monthly payment of £244.

The figures highlight the consequences of a culture of racking up unsecured debt using credit cards, personal loans and overdrafts.

Pensioners now face a retirement in the red that will be made even tougher by spiralling food, fuel and utilities costs.

Add to that the credit crunch, which is making lenders stricter on repayments.

The report was compiled by equity release firm Key Retirement Solutions from an analysis of 4,507 of their customers aged 55 and over who came to them to release some of the cash tied up in their homes.

Last night, Dean Mirfin, spokesman for the firm, said: "As the cost of living is on the up, these figures, even if they are only part reflective of pensioners as a whole, are of real concern.

"Retirement should be a time to enjoy yourself after all those years of hard work.

"The cost of living for the elderly has surpassed inflation over the past decade, therefore it is more important than ever that consumers are aware of the dangers of approaching retirement with such large amounts of debt."

Chris Tapp, director of charity Credit Action, said: "For many pensioners today these figures show it's a case of 'bought then, worrying about it now'.

"With the costs of living increasing dramatically - particularly as winter approaches and fuel costs mount up - it is vital that those struggling are given the help they need to ensure that people aren't trapped by debt."

In April, it emerged that voluntary pensions contributions have halved in the past 12 months.

And the Mail reported in March how for the first time the UK's 11million pensioners owed more than any other age group.