‘Prices kept rising, but my pension didn’t’: retired lecturer found debt help after costs spiralled

When Philip retired at 59, he thought he had planned well for the future. 

After a career that included time in the Marines and later working as a college lecturer in electrical studies, he took voluntary redundancy when his college was restructured. His mortgage was paid off, he had pension provision in place and, by his own account, expected retirement to be comfortable.

“We never had to struggle,” he says. “I thought we were secure.”

Instead, years later, Philip found himself in his mid-70s carrying around £24k of debt and looking for a consolidation loan just to stay afloat.

His story shows a growing problem for some older people: retirement income stays mostly the same, while living costs, debt payments and unexpected expenses keep rising.

Retirement changed by caring responsibilities

Philip’s retirement didn’t unfold as expected.

Shortly after leaving work, much of his focus shifted to caring for his wife as she lived with multiple sclerosis. Following a major mistake during surgery and a prolonged hospital stay, she later required full-time care at home. Being retired meant Philip could be there constantly.

The couple used their savings, along with compensation received after successfully suing the hospital for their catastrophic mistake, to pay for care and make the most of the time they had together. They travelled when they could, often accompanied by a carer. But as the years passed, the financial strain grew and his wife’s condition worsened before she eventually passed away. 

For years afterwards, Philip says money was not his main concern. 

But gradually, spending patterns changed. 

Debt built quietly

Like many retirees, Philip’s income comes from several pensions, state pension payments alongside modest occupational and survivor pension income.

On paper, he believed he should be able to manage.

But rising living costs began to squeeze his budget.

After his wife died, Philip says he struggled emotionally and began drinking heavily. During that period, finances became less of a priority and spending decisions that once felt manageable started to build up over time. He later became seriously unwell and spent time in hospital with liver problems.

“The effects of coming off it [alcohol] nearly killed me,” he says.

After recovering and stopping drinking, Philip focused on rebuilding routines and improving his health. But the financial impact of those years lingered.

At the same time, some borrowing accumulated through difficult periods, including holidays booked after bereavement, purchases put on credit cards and a loan taken out for a specialist three-wheeled mobility scooter that ultimately didn’t work out and had to be sold at a loss.

Over time, balances spread across five or six credit cards.

Eventually, Philip realised repayments had become unrealistic.

“There was no way I could pay the credit cards back,” he says.

Among the debts was around £4,000 owed to NatWest.

What surprised him most was how ordinary spending had started to feel more expensive.

“I like my coffee,” he says. “I was paying around £40 a month for coffee pods and then they went up again. Pensions are rising, but not enough.”

That feeling, of everyday costs rising faster than retirement income, is one he believes many pensioners will recognise.

Looking for more borrowing and finding another option

At the start of 2026, Philip applied for a consolidation loan through Experian.

He thought another loan was probably the only way forward.

Instead, he was referred to Money Wellness.

After reviewing his finances, our advisers recommended a debt management plan rather than additional borrowing.

The plan consolidated his repayments into one monthly payment of £620 over roughly 40 months.

For Philip, the biggest difference was certainty.

“They [the advisers] put my mind at rest,” he says.

Now, he budgets more closely and tracks spending more carefully than before.

“I look at what I’m eating.”

He describes finding ways to keep food costs manageable without feeling deprived, including bulk-buying where possible and planning meals ahead.

Adjusting without giving everything up

Philip says budgeting has not meant cutting out everything he enjoys.

One hobby he has kept is maintaining a marine aquarium, something he describes as therapeutic. He offsets some of the ongoing costs by selling coral fragments to friends and enthusiasts.

“It pays for itself,” he says.

He also keeps active at home and says maintaining routines has become especially important following his own health setbacks. He uses exercise equipment regularly and describes being in a much better place physically than he was a few years ago.

Looking back, he believes he might have sought help earlier if he had known what support existed.

“I was aware of debt help in a vague way,” he says. “But I didn’t really know.”

His advice to other retirees who may be struggling is not to assume borrowing more is the only answer.

Philip is now focused on rebuilding some savings and still hopes to take trips he has postponed.

His experience is a reminder that debt in later life doesn’t always stem from reckless spending. Sometimes it develops slowly, through caring responsibilities, bereavement, rising bills and the reality that fixed incomes no longer stretch as far as they once did.

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