More people could be forced to put off their retirement after racking up crippling levels of unsecured debt, new research has shown.

Debt solutions group Payplan said that the average level of debt is £41,400 for people aged between 50 and 60 who have taken out a debt management plan. They say the majority of the money is owed through credit cards, loans and other unsecured borrowing.

The figure is 25% higher than the amount of debt accumulated by other age groups, which averages £32,700.

The average duration of a debt management plan for the age group is 11 years, compared with nine years for people of other ages.

The gap between the amount of time it takes older people to clear their debts compared with younger generations has increased by 27% during the past year, suggesting the problem of pre-retirement debt is getting worse.

Payplan said 14% of its customers during the year to the end of June were aged between 50 and 60. The group said that debt levels of people on the verge of retirement was "hugely concerning" because people in the age group should be using their extra cash to save for when they retire.

Managing director of Payplan John Fairhurst said: "Most people imagine that as they reach the countdown to finishing work they will have paid off their mortgage and be busily saving for a comfortable retirement.

"These figures show that this is simply not the case for many pre-retirees, and highlights a hugely concerning trend towards indebtedness in later life.

"Indeed, with this group taking an average of 11 years to clear their debts on their existing income, many of our clients will have no option but to delay retirement until they clear outstanding balances and have had the chance to build some type of nest egg."

Meanwhile, research conducted for mortgage adviser website Impartial.co.uk showed that 28% of people aged over 55 still had more than 10 years left on their mortgage term, meaning they would still be repaying it once they retired.

Copyright © PA Business 2008