People close to retirement believe they are more likely to retire with mortgage debt, according to the Equity Release Council (ERC).
Research from the ERC found that 23 per cent of 55-64 year olds expect to retire with an average debt of £65,955.
However, only 17 per cent of 45-54 year olds expect to owe money, at an average of £48,037, and 16 per cent of 35-44 year olds believe they will owe an average of £43,345.
ERC director general Andrea Rozario said: “Many people find that due to unforeseen circumstances they enter retirement with a small amount of debt but the fact that over 400,000 people expect to still be repaying their mortgage when they retire is shocking.
“This suggests that the trend towards people buying homes later in life and remortgaging on a regular basis is having an impact on the type of retirement that people can expect to enjoy.
“With 73% of people intending to use housing equity as part of their later life finances, many are sure to use it to solve the problem of repaying a mortgage or other debt in retirement. Downsizing might be the answer for those with more valuable homes but many 55 – 64s will struggle to repay over £65,000 worth of borrowing and still buy another property. “
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