The typical UK homeowner is still paying off their mortgage in retirement, with retirees aged between 64 and 75 still owing an average of £11,400 on their mortgage, according to the latest TISA and KPMG Savings Index.
Furthermore, the index found that the average UK homeowner over the age of 75 still has a mortgage debt of £3,200, while possessing around £93,900 in pension wealth.
While those between 65 and 74 have an average of £11,400 to pay off their mortgage, their pension is worth roughly £327,500. Those aged between 55 and 64 have the largest outstanding mortgage, on average needing to repay £36,500, and has saved £426,200.
However, while they may have the highest outstanding balance, those aged between 55 and 64 also have the most expensive property, with a typical property value of £354,800. Homeowners between 64 and 74 have a property worth £314,400 and over 75s £283,200.
Commenting on the data, TISA retirement policy manager Renny Biggins said: “Home ownership typically has the most significant impact on people's overall wealth and financial resilience, with the Savings Index indicating a positive correlation between home ownership and savings habits.
“However, it’s clear that the long-held assumption that your mortgage would be paid off once you reached retirement is no longer a sure thing. Though mortgage debt is still reducing with age cohorts, UK households are having to rely on pension wealth and other assets to pay off their mortgages during retirement.”
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