Third of over 55s face retirement in debt
Friday 3rd October 2008, 12:01AM BST.
One in three over 55s have ten years or more left on their mortgages – so face heading into retirement in debt.
On average a homeowner over 55 still owes £55,046 to their banks, and has 7.8 years left on their mortgage, according to impartial.co.uk.
Homeowners aged between 35 and 55 typically owe £92,153 repayable over 13.4 years – suggesting they are paying around £850 per month on a repayment mortgage.
Over 55s average repayments are at £725.
Karen Barrett, marketing director of Impartial, said: “This study suggests that many baby boomers are facing up the reality of still having a mortgage debt close to – or even beyond their retirement age.
“It is crucial that the next generation of homeowners do all that they can to be debt free earlier – as this will give them much more financial freedom to prepare for retirement.”
She advised people to take impartial, whole of market mortgage advice to make sure they are protected against having debts beyond retirement.
The research also shows 28 per cent of over 55s took no financial advice when taking out a mortgage and 30 per cent took advice from their bank or building society.
Thirty-four per cent of people did take independent financial advice in the age group.
The under 34s were most likely to take independent advice before choosing a mortgage.
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