More than 20 percent of those over 55 years old are still paying off a mortgage worth on average £65,107 according to recent figures.
The report from Aviva revealed approximately 21 percent of those aged over-55 still have to make monthly mortgage repayments.
Those over the age of 75 have an average equity in their property of £246,190, but currently only 4 percent of those over 55 are planning to use equity release.
Of those classed as ‘pre-retirees’ (aged 55 – 64), a third are still paying off their debt (20 percent) and have an average mortgage of £64,504. This compares to 14 percent of the ‘retiring’ age group (65 – 74) who owe an average of £61,979 and 9 percent of those over 75, where the average debt actually rises to £78,125.
Although only 9 percent of the over-75s continue to make mortgage payments, the higher mortgage figure shows they will probably find it difficult to pay this off from an income that is often fixed.
However, the average property value owned by the group aged over 55 is £235,590 with the average equity figure revealed to be £218,469 (or £246,190 in the over-75s group).
The report showed that 4 percent already intend to use an equity release product to pay off their mortgage and 6 percent plan on selling their home and down-sizing.
Clive Bolton, the ‘at retirement’ director for Aviva, said: “Even though people are likely to have to work for longer, for many over-55s the likelihood is that they will spend much longer in retirement than any previous generation. For those carrying mortgage debt into their retirement, the issue of how to repay the loan will inevitably come to the forefront when they finally do stop working. As such it is interesting to see just how much equity the over-55s have in their homes.”