Nearly one in five Britons planning to retire this year will have outstanding debts, amounting to £31,200 on average, an insurer has found.
However, the typical amount of money owed has dropped compared with a year ago as more people retire mortgage-free, Prudential said.
The average amount owed by someone planning to retire last year was almost a fifth higher, at £38,200, while the share of people retiring in debt has held steady compared with 2012, at 18%.
People in Wales planning to retire this year are the most likely to be in debt, with 26% still owing money, while just 13% of those in Yorkshire and Humberside expect to take debts into retirement.
On average, retirees with debts expect it will take just under four years to clear the money they owe - but more than one in 10 (12%) believe they will never be debt-free.
Prudential said that 43% of people retiring in debt this year will owe money on their mortgages, compared with 50% a year ago.
Rock bottom interest rates have helped many mortgage holders pay off their loans more quickly than they had expected and the Council of Mortgage Lenders (CML) estimates that one third of mortgages taken out since 2005 have been overpaid.
However, Prudential said it had seen a shift towards retirees having outstanding non-mortgage debts.
Almost a fifth (19%) of people retiring in debt in 2013 will owe money on overdrafts - showing a sharp increase from 13% last year.
Meanwhile 56% of those who will owe money on retirement this year have credit card debts, creeping up from 51% in 2012.
- 1. Uniform tax
If you wear a uniform of any kind to work and have to wash, repair or replace it yourself, you may be able to reclaim tax paid over the last four years. For some people, this could mean a windfall worth hundreds of pounds</p>
- 2. Savings tax
The interest you receive on savings accounts (with the exception of cash Isas) is automatically taxed at a rate of 20%.</p>
Higher-rate taxpayers therefore tend to owe money on the interest they are paid throughout the year. If, however, you are on a low income or not earning at all, you should be able to claim all or some of the tax deducted back</div>
- 3. Vehicle tax
You can apply for a refund of vehicle tax if you are the current registered keeper or were the last registered keeper of your vehicle that no longer needs a tax disc</p>
- 4. Pension tax
If you pay tax on a company, personal or State Pension through PAYE (the system employers use to deduct tax from your wages), you may well end up overpaying</p>
- 5. National Insurance contributions
There is a limit to the amount you need to pay in NI, whether or not you work for an employer.</p>
Instances in which you may find that you have overpaid include if you work two or more jobs and earn more than £817 a week and if you move from self-employment to employment, but continue to pay Class 2 National Insurance contributions</p>