Homeowners over 55 are sitting on an average £311,000 in equity, with one in four owning £400,000, research from Key Later Life Finance has revealed.
Its nationwide study found that 64% of over-55s owned their home outright, with a further one in seven (14%) owning their home with a mortgage.
The average amount owed on home loans by over-55s is £69,000.
Around 69% of over-55s questioned were worried to some extent about whether their retirement income would be enough to live on, with 22% extremely or very worried.
Around two-thirds (66%) were worried that they would have to run down their savings, while 41% were concerned about the risk of having to take on unsecured debt such as loans or credit cards.
Key’s research found around one in eight (12%) over-55s with mortgages still owed more than £150,000 compared with the average £69,000.
Nearly two out of three (65%) of them were worried that paying their mortgage in retirement would have a major impact on their retirement income, while 48% were worried about being able to pay their mortgage off.
Chris Bibby, managing director at Key, said: “The pressures of the cost-of-living crisis may be easing but it is leaving a legacy for over-55s homeowners who have seen their finances suffer at a crucial time for retirement planning.
“Despite sitting on considerable property wealth at an average £311,000 many homeowners are very worried about their retirement income and whether it will last the duration, let alone deliver the standard of living they want.
“Over-55s should seek specialist advice on the growing number of options available to them, which could provide a better outcome than those offered by high street lenders.
“There are more flexible ways to manage mortgage debt in retirement that could provide better outcomes from many homeowners to live the retirement they want.”
