Many hope to pay off their mortgage before retiring because their income will likely be lower. However, new research has highlighted how millions of people reach retirement age with unpaid mortgage debt.
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The LV=Wealth and Wellbeing Monitor showed that 12% of retirees had outstanding mortgage debt when they left the workforce.
The average amount payable on retirement was £43,000.
However, around 19% of those surveyed said they had debts over £100,000 to consider later in life.
For those who have not yet stopped working, fears about impending retirement and mortgages are strong.
READ MORE: Retirees ‘risk’ having cold homes as energy costs soar
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Mr Bolton also expressed concerns about rising interest rates and the impact they could have on mortgages.
This could mean people are spending more time paying off their mortgage, which could significantly reduce their retirement.
Additionally, a large mortgage could also mean people are taking more money out of their retirement savings.
This could be at an unsustainable rate, and therefore create other financial problems later in life.
However, there are certain options available to a person when it comes to paying off their mortgage.
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Mr Bolton continued: “Selling your house and moving to a smaller property is one of the easier choices.
“But some people use the 25% tax-free cash to pay off or reduce their mortgage.
“Others will consider a lifetime mortgage if the outstanding balance is low enough.”
Many of these options can be financially complicated, it should be noted.
A lifetime mortgage, for example, may not be suitable for everyone because it means repayments are due when a person enters a long-term care facility or dies.
As such, Bolton recommends consulting a financial advisor for any major decision.
These professionals can often offer personalized advice to help Britons in their decision-making process.
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