Research has found that 21% of over-55s who applied for a range of credit including credit cards, overdrafts, unsecured and secured loans over the past two years have been rejected.
The research from equity release lender More 2 Life found that many of these blamed their age for being rejected.
They were most likely to be turned down for new credit cards or extended credit on existing cards – 15% of those who have been turned down were rejected by credit card providers with around 4% turned down for unsecured loans.
More 2 Life believes the clampdown on borrowing for the over-55s highlights a growing issue for the financial services market as retirement goes through seismic changes as pension freedoms and increased longevity means people will be working longer.
It is highlighting the issue ahead of the Great Retirement Money Debate organised by the Equity Release Council which More 2 Life is sponsoring on 19 May at The Royal Society of Medicine in London.
More 2 Life’s research shows there is strong demand among the over-55s for credit – around 58% of over-55s have applied for some form of credit in the past two years.
Stuart Wilson, marketing director at More 2 Life, said: “We are in the middle of a seismic shift in how people fund retirement and the impact is being felt in retirement income products.
“But it is clear that retirement lending has to change as well to address the need and desire among older customers to have access to credit and not be turned down simply on the grounds of age. Of course responsible lenders have to treat customers fairly and assess their ability to repay.
“There is real demand for regulated products which address this demand and it needs to expand beyond the growing markets such as equity release and secured lending into credit cards and unsecured loans as well as innovative solutions that recognise the wealth of the over-55s.”