Almost half a million pensioners in the UK still have not paid off their mortgages (Image: Getty)
Half a million pensioners are still paying off a costing them a third of their income, as monthly payments come at £766 on average.
On average, retired holders still owe thousands, according to research from over 50s financial specialist .
SunLife’s report surveyed more than 2,000 people over 50 and discovered that of the 69% that are homeowners, more than 1 in 5 still have a , owing £67,478 on average.
While most of those with outstanding mortgages are still working, the research showed that 14% of those still paying off their mortgages are retired.
Sun Life said on average, the income of a pensioner’s household was £31,063.84, so this meant almost a third of their entire income is still being spent on housing or £9,192 a year.
Mark Screeton, CEO at SunLife said: “According to our research, the average homeowner pensioner has a home worth more than £330,000, but a household income of just over £30,000.
“This means that the vast majority are cash poor and property rich, and while most own their homes outright, around 1 in 20 still have a . For those people, a huge chunk – almost a third – of that relatively modest income is still being spent on housing.”
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SunLife’s research found that the vast majority of retirees love their home, and they never want to move but fear they will struggle financially if they don’t downsize to a cheaper property.
Earlier this month, Just Group revealed that eight in 10 (79%) pensioner homeowners were failing to claim any of the benefits they were eligible to receive in 2024, missing out on an average of £1,807 a year in extra income.
Nearly one in 10 who were claiming were receiving too little, on average missing out on an additional £2,915 a year income.
Just found 33% were entitled to one of the key benefits including:
– Guarantee Pension Credit is the main benefit targeted at helping low-income pensioners. It was being claimed by only one in 10 of those pensioner homeowners who were eligible. Households failing to claim were losing an average £1,391 extra income per year.
– Savings Pension Credit – only 8% were eligible for the ‘top up’ benefit for low-income pensioners who have modest savings but only a quarter (25%) of those eligible were claiming, with the average annual loss £933 per household.
-Council Tax Reduction should be claimed by nearly three in 10 (29%) of households, but only a quarter of those were actually claiming with the average annual loss £1,067.