One in seven personal loan applications are made by individuals approaching retirement, research shows.

Moneysupermarket research, which has been revealed exclusively to the Daily Express, found that 14.5% of people who applied for aThe research, carried out among just over 2,000 Brits, found nearly a quarter (23%) of loan applications among the over 55s were for more than £15,000.

While most UK lenders have an upper age limit of around 75, taking out a substantial loan later in life can put many people at risk of being unable to pay it off before they retire or, in a worst-case scenario, pass away.

Moneysupermarket, which commissioned the research from YouGov, said being in such debt could significantly impact family savings, leaving little to cover funeral costs or essential expenses if they had been relying on the deceased person's income.

Interest can add to the debt, making it more expensive to pay off if larger repayments are unaffordable.

According to MoneySuperMarket's loan calculator, a £10,000 personal loan with an interest rate of 9.9% APR will cost an extra £5,500 to pay off over 10 years.

Kara Gammell, finance expert at , says: "Taking out a big personal loan later in life can be risky for people over 50. High interest rates and the challenge of paying off the debt before retirement can put their savings and financial stability in jeopardy.

"Personal loan debt can eat into savings meant for retirement or other important expenses, leaving people with less financial security as they get older. If the borrower dies before the loan is repaid, the debt can become a burden on their family, reducing the inheritance left for loved ones and adding financial stress during an already tough time.

"Having a lot of debt can also limit financial flexibility, making it harder to handle unexpected expenses or emergencies, which is especially challenging for those on a fixed income in retirement.'"

One solution to ensure loved ones are provided for after death is a life insurance policy. "However, our data suggests that many over 50s lack this valuable protection," said Gammell.

Life insurance payouts are not counted as part of someone's estate, allowing them to bypass the probate process and be handed to loved ones sooner to help cover necessary expenses.

Gammell added: "A recent MoneySuperMarket life insurance survey, only 18% of people over 55 said they owned a life insurance policy, either through work or a personal policy.

"Additionally, 46% admitted they had never even gotten a quote for life insurance, often citing cost concerns.

"Despite this, our latest data shows that it's still possible for over 50s to get affordable cover, with applicants aged 65-69 paying only around £2 more per month compared to policyholders under 50.

"The key to keeping the cost of your life insurance down is to shop carefully for your cover. Many over 50s don't have to worry about paying off a or supporting young children, so they can choose shorter policy terms and lower payouts to reduce their premiums."