Nearly one in five of people retiring this year will do so with outstanding debts, typically owing £5,000 more than those who retired in debt in 2011, research suggested today.
This year's "debtor retirees" owe £38,200 on average, and nearly one in 10 (8%) will never be able to pay the total sum off, an annual report from Prudential found.
However, the proportion of people retiring in debt this year, at 18%, has fallen slightly from 20% last year.
Those planning to retire with debts in 2012 will make monthly repayments of £260 on average, equating to one fifth of their expected £1,290 a month income.
More than half of those who owe money (51%) said they are struggling with outstanding credit card bills.
Vince Smith-Hughes, Prudential's retirement income expert, said: "With a manageable repayment programme in place, debts need not become an issue for this year's retirees - and there is plenty of help available through the Money Advice Service and Citizens Advice Bureau."
The Prudential research across Britain also found that people in Wales planning to retire this year are the most likely to have debts (21% of retirees) while those in the East Midlands are the least likely (11% of retirees).
The research included more than 1,003 people retiring in 2012.