INSTEAD of bequeathing substantial sums to their families, some cash-strapped pensioners in Dorset are passing on their mortgage debts to their children.

As the credit crunch bites, new figures show that one in eight over-60s and four per cent of 80 and to 84-year-olds are still repaying a mortgage.

A survey by Help the Aged and Barclays revealed that more people are reaching state retirement age in debt and borrowers approaching it owe four times more than their counterparts a decade ago.

Stuart Nourse, office manager at Age Concern Christchurch, wasn't surprised by the statistics.

He said: "I've noticed more older people coming into our office for financial help. We have the highest ratio of retired people in the country and those on fixed pensions are definitely struggling to pay rising bills.

"In the worst cases they are having to pass on their mortgages to their children but that is the exception rather than the rule."

Christine Cook, Christchurch Citizens Advice Bureau manager, said: "We have definitely seen an increase in older people with debt problems.

"The elderly are very embarrassed about being in debt and it can even affect their health. Our advice is that they should seek help rather than let the debt mount up."

Help the Aged head of policy David Sinclair warned of "a ticking timebomb," adding: "Even owing a relatively small amount can cause untold misery for those living on a fixed income."

Poole pensioner John Cherrett, chairman of Wessex Pensioners Convention, said: "This is the 100th year of the state pension; when it started it was five shillings a week and a quarter of the average wage.

"Now it's 14.7 per cent and long short of the official poverty level; the worst off are women who have taken time off work to care for children and relatives.

"We are struggling. I had a mortgage when I retired and had to go into an equity release scheme to pay it off; so one-third of our property doesn't belong to us.

"Fortunately our children are in decent jobs. I go out once a month and save vouchers to help pay for our meals. We are certainly not cash rich."