You are here: Home - Uncategorized -

Pensioner mortgage debt averages £38,000

Written by:

20% of retired homeowners are still paying off their mortgage, with the amount outstanding averaging £38,000. One in eight pensioners owe more than £50,000 on their homeloan, and a third also owe money on credit cards, with the average balance weighing in at £5,900.

According to research from Scottish Widows, the total debt held by UK pensioners adds up to £57 billion.

Ian Naismith, head of pensions market development at Scottish Widows, said that these debts were “adding financial pressure to [pensioners’] hard-earned retirement funds”, and advised:

“It is important for those people who will be reaching retirement in the next few years, and still have debt outstanding on their mortgage, to consider how best to prepare themselves for the eventuality of having to juggle their debts on a reduced income when they stop working.”

The research also revealed that one in 12 retired people still has at least one financially dependent child, with almost a third of these offspring over the age of 18, and 16% over the age of 35.

With so many demands on their limited income, pensioners have a modest take on what it means to be ‘well-off,’ citing annual income of £27,700 as sufficient to put them in this category. That compares to the nation at large, which deems earnings of £36,300 to mean ‘well-off’.

The average retiree’s annual household income is £22,900.


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
FTSE drops as global markets fall

The UK’s leading stock index fell 1.83% yesterday as ongoing concerns about global credit markets shook investor confidence on both...