Mortgage demands overshadow retirement

A study, carried out by Scottish Widows Bank, shows that there are 1.76 million Brits reaching the autumn of their lives with a total mortgage bill of £80 billion.

This equates to an average debt of £45,313 for each pensioner, with one in ten owing more than £100,000.

The situation is only likely to get worse as future retirees are likely to be worse off than the current generation – the average 55 to 65-year-old working full time has a mortgage debt of £61,856.

Murdo McHardy, head of product development at Scottish Widows Bank, commented: “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.”