According to the Prudential, it is likely that over 12.5 million people will still be paying off their mortgage during retirement. The research done by the financial services provider found that almost 50% of first time buyers are over the age of 35, with over 20% being over the age of 45. With more and more people taking out 25-year mortgages, repaying them after the age of 60 is looking likely.
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The research will become reality, especially if house prices continue rising and first time buyers struggle to get on the property ladder. These problems highlight financial problems for people in later life if they do not start saving towards their retirement. People in general underestimate the amount of money they will need to live on in retirement. If they also have to add mortgage payments to that amount, the pressure could really be on.