Many OAPs stuck with mortgage

A recent report has suggested that many people that reach retirement age these days are still lumbered with a mortgage, and the problem could get worse in the future. The report suggests that around one third of middle age homeowners will still be paying their mortgage when they come round to retirement age.

It is thought that more than a million people in this age group will find that they are not able to clear their mortgage debt before they retire. Many are facing steep income falls once they retire, which could make it even more difficult to get their mortgage paid.

One industry official said: ‘Many baby boomers are facing up to the reality of still having a mortgage debt close to or even beyond their retirement age. Even those that should be debt-free by 65 still have substantial commitments. It is crucial that the next generation of homeowners do all they can to be debt-free earlier.’

Many people that reach retirement age are still helping out their kids or grandchildren with financial issues, and this could make the situation even more difficult when it comes to also affording a mortgage on the limited income that comes with retirement.