A fifth will retire in debt this year
Nearly one in five people (19%) set to retire this year will do so in debt with more than two fifths (43%) still owing on their mortgage, according to latest research by Prudential.
This is an increase of 2 per cent when compared to the ‘Class of 2014’. However the average amount owed has dropped to £16,400.
On average those retiring in debt believe it will take at least three years to get back into the black. One in 10 though face a much tougher time, expecting to need nine or ten years to repay off all their debt while 5 per cent don’t think they will ever be able to clear their debts.
Richard Espley, Head of Equity Release, comments:
“It is stressful to have debt hanging over you at any point of your life but it is a particularly anxious time when you’re no longer working and earning a wage, especially if that debt is something as sizeable as a mortgage.
“Yet retirees don’t have to enter their twilight years with a black cloud of debt raining on their parade, nor do they have to go through the stress of selling their home and downsizing or using a large chunk, if not all, of their pension.
“Equity release allows a homeowner to unlock some of the value of their property whilst retaining the right to live there. The amount borrowed is then repaid when their home is sold - either when they both pass away or go into residential care.”
Content correct at time of publication