Contrary to popular belief, the need to obtain access to credit is transversal to all phases of life. The retirement age is typically seen as a phase of life in which people already have their financial situation minimally stable, but this does not always correspond to the truth. For this reason, we are seeing an increasing demand for credit for pensioners.
This new reality can not be dissociated from the crisis that plagued Portugal in recent years and has altered the habits and paradigms we had as normal. Personal credit applications rose to unprecedented levels in the country, mainly as a result of the need to meet urgent expenses.
Nowadays, retired people already account for about 20% of the Portuguese population, which shows that this segment of the population has increasingly turned to personal credit.
Reasons for Retired People to Use Personal Loans
As we know, reform should be synonymous with stability. A time when people should be able to enjoy life, do what they like best and be close to the family.
It turns out that the crisis that left marked marks in a large part of the Portuguese population also hurt the retired people, taking this age group to a financial situation more unfavorable than they had ever anticipated.
Knowing that one out of every 10 Portuguese pensioners is currently over-indebted, we can and should question the reasons that lead the retirement age to subscribe credits.
The two main reasons that lead retired people to resort to personal credit are:
- The need to help their children : the active population has lost much of its purchasing power and many people are at risk of default. Thus, many retirees decided to take credit to help their children, thus preventing them from coming into default.
- Pension cuts : Many pensioners were also substantially affected by unexpected cuts in their pensions, thus failing to be able to fulfill the obligations they had in the meantime. This is another reason why retired people can resort to credit.
Is There A Personal Credit For Retired People?
This is a very pertinent question: is there a credit for retirees? A specific credit for people of a higher age?
The answer is no. In the financial fabric, we can not find any specific personal credit for pensioners, something that is even relatively common out there.
In view of the absence of specific credit products suited to their financial situation and needs, retired people are likely to have recourse to products of general scope. However retirees are likely to see their processes approved as they have a fixed income from the state.
Cares That Retirees Should Have Before Hiring A Loan
Like the rest of the population, pensioners are not immune to over-indebtedness and therefore should only advance to a claim after carefully studying their current financial situation and all data associated with the loan.
Hiring a personal loan is a decision that must be carefully weighed and evaluated.