21% of people retiring this year will still have debts when they stop work, owing an average of £33,100 according to new research from Prudential.

One in 20 will retire with outstanding debts of more than £50,000, rising to one in 10 among men over the age of 65.

Another 14% don’t know whether or not they will be debt-free when they retire.

The major sources of debt in retirement are credit cards and mortgages – 55% of those retiring with debts in 2011 owe money on credit cards while 52% still have outstanding amounts on their mortgage.

Men are more likely than women to carry debt into retirement – around 23% of men say they will still owe money compared with 18% of women. And the average debt owed by men is substantially higher at £39,500 compared with £25,100 for women.

Vince Smith-Hughes of Prudential, said: “These figures show how the Class of 2011