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03 Jul 2022

Many expect to be still paying mortgage in retirement

Many expect to be paying mortgage in retirement

Almost 800,000 people expect to be paying off their mortgage or paying rent when they retire, according to a recent survey. 

Almost half of people recently surveyed believe they will have to find some form of work to supplement their income when they reach retirement age.

The research carried out on behalf of Aviva has found that the majority of people (60%) believe they will have their homes paid off by retirement. However, 27% of those surveyed believe they will still be making payments.

The survey of 1,400 people was carried out by iReach Insights on behalf of Aviva in August.

As many as one in four householders believe they will still be paying off their mortgage or paying rent when they retire, according to research carried out by insurer Aviva.

A significant amount of people aged over 55 - about a fifth - said they expect to be still making mortgage repayments or paying rent in retirement.

The survey of 1,400 people was carried out by iReach Insights on behalf of Aviva in August.

If the findings are applied to the wider population, it amounts to over 780,000 people who would expect to still be paying either their mortgage or rent in retirement.

44% of those survey said they would most likely take up a job - either full or part-time - to supplement their income in retirement.

One in ten said they would be seeking a full-time job, when they reach retirement age.

"A Central Bank of Ireland report published in July reported that the over-60's currently represent a quarter of all cases in long-term mortgage arrears. The reality is that this figure is likely to increase further as will the incidents of people struggling financially in retirement unless people begin to save for their retirement earlier and take advantage of the tax benefits that are available to pension savers," Stephen Rice of Aviva said.

"Our research findings highlight some very real societal issues that need to be debated at policy and governmental level if we are to avoid people living in poverty in retirement or being forced to work well beyond their normal retirement age," he added.

"It is also likely that the number of long-term renters will continue to grow as they simply can’t get on the property ladder and will continue to have to pay rent, up to and including in retirement," Mr Rice said. 

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