Entering retirement should come with a feeling of relief. No more work, you’re entering a relaxed, stress free period of your life, right? For many of us, that’s not quite the case.
Entering retirement in debt is never ideal. Nobody wants to still be paying off mortgages, loans and credit cards in their retirement days. We all wish to have a relaxed retirement, without the worries of financial debt.
However, for many of us, this won’t be possible. It will take more than three and a half years for the average retiree to be debt free, according to research by Prudential. This is going to cost on average £285 a month.
For many this is a substantial amount, especially as some pensions continue to drastically underperform and retiree’s savings are dwindling. But, there are options for older homeowners struggling with debt.
Many lenders are now offering different avenues for retirees and older homeowners ranging from increased maximum ages on mortgages to equity release.
If you’re entering retirement in debt or simply want to discuss your options for older homeowners, contact your advisor today!