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Metro
2 days ago
- Business
- Metro
Millions could be paying off debt well into retirement amid 'pension postcode lo
A 'postcode lottery' means people face carrying hefty mortgage debt well into retirement, an analysis has found. Years of putting off home buying amid rising property prices and extended mortgage terms mean some Britons will be paying off loans for decades. According to the study released today, 48% of over 50s are in some form of debt, with 14% having yet to pay off their mortgages. But regional inequality is rife in the UK, with at least 20% of over 50s in Northern Ireland being set to pay off home loans well into their golden years, the highest number in the UK. They have an average of £50,409.09 in outstanding debt. The highest percentage of debt-raddled over 50s in England is in the North West, at 19%, with an average mortgage debt of £48,839.55. But 30% of the age group in the region have no private pensions, with the average income being less than £25,000. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video London faces what the survey-maker called a 'perfect storm' of low homeownership, mountainous debt, financial anxiety and pay cheques that barely cover the bills. Just 55% of older Londoners own their home, while many take only £31,164 each year, far lower than in other regions. Over 50s cough up around £1,230 each month for their homes in the capital, far above the average payment elsewhere in the UK at £887. While fewer over 50s in East Anglia have mortgages to repay, the region has the most eye-watering average mortgage debt at £96,471.43. The South East is not far behind with an average debt of £95,905.77. In Scotland, more than half (53%) of the surveyed age group are in debt. Mark Screeton, CEO of SunLife, the life insurance group behind the survey, said: 'Our research shows a clear 'postcode lottery' when it comes to retirement, where people's ability to enjoy later life appears to be impacted by where they live. 'Whether it is mortgage repayments dragging into retirement or higher levels of consumer debt, older people in some areas are facing greater financial concerns than others.' More Trending The retirement age in the UK is 66 for men and women, which is when people receive their state pension. SunLife said that of the 2,000 people aged over 50 polled, the cost of living remains a top concern in certain regions. Worries over spiralling costs were highest in: Northern Ireland (74%) Scotland (71%) East Midlands (68%) London (56%) View More » Screeton added: 'For homeowners over 55 – even those with an outstanding mortgage – equity release could offer a way to clear debts, stop monthly repayments, and unlock the value in their home without having to move. Get in touch with our news team by emailing us at webnews@ For more stories like this, check our news page. MORE: Map reveals the 5 cheapest London postcodes where properties cost less than £300,000 MORE: I loaned my parents a few hundred quid — then they stole thousands MORE: Here's how you can find out if you're owed money from your state pension Your free newsletter guide to the best London has on offer, from drinks deals to restaurant reviews.
Daily Mail
2 days ago
- Business
- Daily Mail
Retirement poverty 'postcode lottery' revealed: Areas of Britain where the elderly are most under strain...
Many over-50s are under financial strain across the country but Londoners are among the most vulnerable, new research claims. The home ownership rate for older people living in the capital, where property prices are sky high, is by far the lowest in the UK at 55 per cent. This is a key indicator of retirement poverty, because it means people still face housing costs in old age. Yorkshire and Humberside has the highest rate of home ownership among over-50s at 77 per cent, followed by Northern Ireland at 76 per cent - and in no other part of the country is it below 60 per cent. London is famously home to very wealthy people, but it scores badly in several measures of likely poverty in old age, according to the study by SunLife. Just over half of London residents aged over 50 are in debt, only slightly lagging the South East at 52 per cent and Scotland at 53 per cent. They are also among the most likely to fear running out of money in retirement at 38 per cent, again only slightly lagging their counterparts in the South East and Scotland. Average income before tax is highest in these same three regions, at £31,000-plus - but this will be outweighed by the higher cost of living. 'In London particularly there seems to be a "perfect storm" of low homeownership, high debt, below-average income, and financial anxiety, all at a time in life when many would hope to feel more secure,' says SunLife chief executive Mark Screeton. His firm surveyed more than 2,000 people over 50 about their financial situation, their history of big purchases and what is on their wishlist to buy in retirement. Last week, an influential industry survey showed the cost of a comfortable retirement now tops £60,000 a year for a couple, and is £43,900 for an individual. A couple aiming for a 'moderate' lifestyle, which includes enjoying meals out and trips abroad, now need to find £43,900 annually, while an individual - who lives on one state pension, not two - requires £31,700. However, lower energy prices mean the cost of a minimum lifestyle has fallen 4 per cent for a couple to £21,600 and 7 per cent for an individual to £13,400. The Pension and Lifetime Savings Association figures do not include income tax, housing costs if you are still paying a mortgage or rent, and potentially care costs in later life. SunLife found the cost of living is the number one financial concern among over-50s. In Northern Ireland 74 per cent worry about it, in Scotland 71 per cent, and in the East Midlands 68 per cent - though in London 56 per cent said it was a concern. Overall, those surveyed had lived in their homes 22 years on average, and in terms of home improvements a new kitchen was number one on the wish list for men, while women would rather have new carpets and floors. Screeton says: 'Our research shows a clear "postcode lottery" when it comes to retirement, where people's ability to enjoy later life appears to be impacted by where they live. 'Whether it is mortgage repayments dragging into retirement or higher levels of consumer debt, older people in some areas are facing greater financial concerns than others.' How to sort out your pension if you fear it's falling short 1) If you are worried about whether you will have saved enough, investigate your existing pensions. Broadly speaking, you need to ask schemes the following questions. - The current fund value. - The current transfer value - because there might be a penalty to move. - Whether the pension is in a final salary or defined contribution scheme. Defined contribution pensions take contributions from both employer and employee and invest them to provide a pot of money at retirement. Unless you work in the public sector, they have now mostly replaced more generous gold-plated defined benefit - career average or final salary - pensions, which provide a guaranteed income after retirement until you die. Defined contribution pensions are stingier and savers bear the investment risk, rather than employers. - If there are any guarantees - for instance, a guaranteed annuity rate - and if you would lose them if you moved the fund. - The pension projection at retirement age. You can use a pension calculator to see if you will have enough - these are widely available online. 2) You should add the forecast figures to what you anticipate getting in state pension, which is currently £230.25 a week or around £12,000 a year if you qualify for the full new rate. Get a state pension forecast here. 3) If you are tempted to merge your old pensions, read our guide first to ensure you won't be penalised. 4) If you have lost track of old pots, the Government's free pension tracing service is here. Take care if you do an online search for the Pension Tracing Service as many companies using similar names will pop up in the results. These will also offer to look for your pension, but try to charge or flog you other services, and could be fraudulent.
Daily Mirror
3 days ago
- Business
- Daily Mirror
UK area where a fifth of over 50s still have mortgages to pay off
Older people in many areas have on average more than £95,000 in mortgage debt A growing number of over 50s are moving towards retirement saddled with thousands of pounds in mortgage debt. Research from life insurance group SunLife found 14% of over 50s are still paying off a mortgage. The region with the highest proportion was Northern Ireland, where 20% of over 50s are still making repayments, with an average of £50,409.09 in mortgage debt to pay off. This was followed by the North West of England, where 19% of people in this age group still having a mortgage, with on average £48,839.55 outstanding to pay. Yet 30% of over 50s in the region have no private pensions at all. There area with the highest average mortgage debt for over 50s was East Anglia, with £97,015.63 outstanding. This was followed by London, with £96,471.43 on average left to pay and the South East, where average mortgage liabilities stand at £95,905.77. Scotland was the area where the most people had some debts to repay, with 53% of those surveyed with some form of debt. Mark Screeton CEO of SunLife, said: "Our research shows a clear 'postcode lottery' when it comes to retirement, where people's ability to enjoy later life appears to be impacted by where they live. "Whether it is mortgage repayments dragging into retirement or higher levels of consumer debt, older people in some areas are facing greater financial concerns than others." He warned that older Londoners in particular may be struggling: "In London, particularly there seems to be a 'perfect storm' of low homeownership, high debt, below-average income, and intense financial anxiety, all at a time in life when many would hope to feel more secure." In the capital, just over half of over 50s have some debts. The average mortgage holder pays £1,229.79 a month in repayments with an average income of £31,164.34, or around £2,590 a month, meaning almost half of their monthly income is going towards their mortgage. READ MORE: Millions to get £300 winter fuel payment this year after government U-turn There were two other areas with average mortgage repayments above £1,000 a month, these being the South East with £1,223.67 a month and the North East with £1,196.69. Meanwhile, the area with the lowest average mortgage repayment was Northern Ireland, where average repayments are around £643.61 a month. These were the full survey results for how many over 50s still had a mortgage, with the average bill left to pay: Northern Ireland - 20% - £50,409.09 North West - 19% - £48,839.55 South East - 16% - £95,905.77 East Anglia - 16% - £97,015.63 Yorkshire and Humberside - 16% - £60,812.54 South West - 15% - £72,552.15 East Midlands - 13% - £61,352.38 North East - 12% - £64,915.38 Wales - 11% - £52,901.69 West Midlands - 11% - £33,541.82 London - 8% - £ 96,471.43.
