According to research from Prudential, over one million retirees will face an average debt of £15,500 when they enter retirement.
The study also shows that up to a quarter of retired adults say their current household income is insufficient for their total monthly outgoings.
A smaller proportion of retirees are also facing more severe problems as around 70,000 pensioners could be landed with debts of between £50,000 and £75,000.
"It's worrying to think that such a large number of retirees have debt over £50,000 of which the interest charges will be eating into their well-earned retirement funds," said Angus MacIver, director of Prudential UK.
"Pensioners paying out around £60 a week for loans or credit cards in interest charges while still trying to budget for bills and food and so on doesn't bode well for an enjoyable retirement," he continued.
"Interest rates have been pretty stable for a number of years but if these start to rise sharply over the next couple of years, debt repayments may not be sustainable for pensioners."To read more about pension savings and retirement, click here.
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