According to new research, one in seven UK homeowners will still be paying off their mortgage at the age of 70

9 July 2018

One in seven will be paying their mortgage at 70 The study, which questioned more than 700 people between the age of 18 and 64 found that 14% of those asked were expecting still to be making payments on their home at retirement age. More than 40% said that they would most likely still be renting by the age of 70.

The main factors in these responses are almost certainly a mix of homeowners getting on the housing ladder later in life, higher house prices and longer borrowing terms. Unlike previous generations, paying off your mortgage by the age of 70 is no longer a given and paying a mortgage into your 70s will become increasingly common. Inflated property prices have ensured that people are getting onto the property ladder much later and are borrowing more money over a longer term. Those who are left in later life with an outstanding mortgage on their property face the prospect of either budgeting mortgage payments into their retirement finances, downsizing or alternatively continuing to work.

This study comes after a recent Freedom of Information request by a leading insurer found that pensioners paid a total of £24 billion in income tax in 2015/16. Between the mid-1990s and the mid-2010s, the number of taxpayers over the age of 65 had nearly doubled from 3.32 million to 6.49 million.

Commenting on the figures, Sir Steve Webb, the former pensions minister said:

"Many people might assume that once you retire you cease to be of interest to the taxman, but these figures show that this is very far from being the truth."

"The number of tax-paying pensioners has nearly doubled in the last two decades and with talk of requiring pensioners to pay national insurance on earnings, the older population may think of themselves as 'generation still taxed'."

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    • Sp avatar Suraj Thandi

      Suraj has over 15 years of Banking and Finance experience having previously worked as an Area Manager for one of the UK's largest Private…