IVAs for Pensioners and Retired People

Can Pensioners Get an IVA?

Yes. There’s no upper age limit. What matters is whether your pension income leaves enough spare each month for regular payments.

Last updated: November 2026

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May not be suitable in all circumstances. Fees apply, read more. Your credit rating may be affected, read more.

Things to know about IVAs

An IVA is a formal insolvency procedure. It must be approved by your creditors, stays on your credit file for six years, fees are taken from your payments, and debts are only written off if you complete it. It isn’t right for everyone.

Read the key risks

Creditors must approve it. An IVA only goes ahead if creditors holding at least 75% of the debt that is voted agree. Your proposal can be rejected.
Credit file and public register. An IVA stays on your credit file for six years from the start date and is listed on the public Individual Insolvency Register while it runs. Getting credit will be harder.
Spending restrictions and annual reviews. You live on an agreed budget for the length of the IVA (usually 5–6 years). Your income and spending are reviewed each year, and your payment can go up.
Fees. Fees are taken from your monthly payments, so less of what you pay reaches your creditors. How IVA fees work.
Your home. Under the current IVA Protocol, your home isn’t included in the IVA and you won’t be asked to remortgage. If your share of the equity is £10,000 or more, the IVA usually lasts six years instead of five.
If it fails. If you can’t keep up payments the IVA may fail, you would owe the remaining debt again, and the supervisor may petition for your bankruptcy.
Write-off only on completion. Remaining qualifying unsecured debts are only written off if the IVA is completed successfully. Secured debts, court fines, child maintenance, student loans and some other debts can’t be included.
Other options may suit you better. A debt management plan, DRO or bankruptcy may be more suitable. IVAs are available in England, Wales and Northern Ireland only; different solutions apply in Scotland.

Debt affects people of every age, including those living on a pension. An IVA can be an option for retired people, but it’s worth weighing up the alternatives too.

The short answer

There’s no upper age limit for an IVA.
Your State Pension and private pensions count as income.
You need enough spare income after essential costs for regular payments.
If your income is low, a DRO or bankruptcy may be more suitable.
Check you’re claiming Pension Credit and other help you’re entitled to.

Is an IVA a good idea in retirement?

It can be, if you have a steady pension and debts you can’t clear. But a five or six year commitment is significant, and your income is unlikely to rise. Think about whether other options may suit you better.

What alternatives should I consider?

A DRO if your debts are under £50,000, your spare income is low and you don’t own your home. See what is a DRO?
Bankruptcy, where your pension pot is usually protected. See bankruptcy explained.
A debt management plan if you could repay in full in a reasonable time.

What about my pension pot?

If you haven’t yet drawn your pension, your IVA terms may ask you to consider any lump sum you can access. See can an IVA take my pension?

Am I claiming everything I'm entitled to?

Many pensioners miss out on Pension Credit, which can also unlock help with council tax and housing costs. A benefits check through a free advice service is worth doing first.

Common questions

Is there an age limit for an IVA?

No. Age isn’t a barrier. Creditors look at whether the payments are affordable and sustainable.

What happens to my IVA if I die?

The IVA usually ends, and creditors can claim against your estate. Family don’t inherit the debt unless it was joint. See what happens to an IVA if you die.

Does the State Pension count as income in an IVA?

Yes. All your pension income counts when your payment is worked out.

How IVA Advice Online can help

Every situation is different, and an IVA isn’t right for everyone. We can look at your income, spending and debts with you and set out the debt solutions you could qualify for, including options other than an IVA. To talk it through, get in touch.