More pensioners declared bankrupt

The problem was worst in rural areas, the report suggested

The proportion of pensioners going bankrupt has more than doubled in five years, research has suggested.

Of bankruptcies in England and Wales during 2007, 7% involved retired people - up from 3% in 2002, a report said.

This meant 7,900 pensioners were declared bankrupt over the past year, compared to 900 five years previously.

Accountants firm Wilkins Kennedy, which produced the study, said older people unused to being offered credit "may take on unmanageable levels of debt".

Missing out

The researchers warned that the figures are likely to get even higher, as increased life expectancy and rises in the price of food and fuel put a greater strain on the limited savings of many pensioners.

The older generation still feel the stigma of bankruptcy and are reluctant to ask Keith Stevens Wilkins Kennedy

In addition, the study indicated the problem might be worst in rural areas.

That could be because of pensioners not being able to rely on free public transport, and fewer opportunities for part time work, researchers said.

Keith Stevens, insolvency partner at Wilkins Kennedy, said: "More and more pensioners are going bankrupt as they struggle to repay debts when their pension is their sole source of income.

"Although attitudes towards bankruptcy have changed dramatically since the days of debtors' prisons the older generation still feel the stigma of bankruptcy and are reluctant to ask for help until it's too late."

Senior citizens could be missing out on money to which they are entitled because of the complexity of the government's pension credits system, researchers added.

The research was based on a study of 1,250 bankrupts in England and Wales.