13% of retirees still paying mortgage

One in eight retirees (13%) continue to pay off a mortgage in retirement, research from MGM Advantage has revealed.

The retirement income specialist found that retirees now have a collective mortgage debt of £76bn which works out as an average debt of £47,458 per person.

Andrew Tully, pensions technical director at MGM Advantage, said: "These figures are alarming and show the pressure people face on a daily basis trying to balance the household budget.

“Although many people consider themselves retired they are continuing to pay off their mortgage, some with quite substantial balances.

Dig a little deeper and many people are working part time, sometimes through choice but often simply to make ends meet."

The research found that 6% of retired people aged 55 and over are working part-time to supplement their incomes in retirement.

Tully added: "Talking about debt in retirement will be a taboo for many people who find themselves in this position. But there are ways retirees can access practical help and advice."

Peter Lawrence at Lawrence Rand said: “This report highlights the need to take sound financial and mortgage advice at the earliest opportunity in order to plan and manage personal circumstances.

Our mortgage advisers will be pleased to assist.”