Many of the UK’s grandparents are facing debt management problems later in life, it has been found.

A Scottish Widows survey revealed that the average non-mortgage debt for retirees amounts to £7,344, marking an increase from the £6,732 seen last year.

"The recession has seemingly done nothing to encourage retirees to cut their debt, and with the possibility of the value of their property dwindling, they could be leaving themselves in a vulnerable position," noted Ian Naismith, head of pensions market development at Scottish Widows.

He believes people should be able to enjoy their retirement without financial worries, which could make them consider taking on the expertise of a debt management firm.

Research also shows that debt related to mortgages is on the rise, as 15 per cent of retirees have an outstanding mortgage.

Keith Churchouse, director at Churchouse Financial Planning, recently suggested that people need to look for more than one means of funding their retirement, which may include using ISAs or setting up a business.

He said that there are a number of options for people to choose from, which will ultimately give people more financial stability when they do retire.