'Hundreds of thousands' dipping into pension pots to pay mortgage

Many expecting to make repayments beyond age 70

Hannah Godfrey
clock • 2 min read

Some 320,000 homeowners aged 51 to 65 are planning to use money from their pensions to pay off their mortgages, research from Just has found.

According to figures from the Office for National Statistics and Just's research, 316,049 homeowners with mortgages are planning to use a pension lump sum or income to pay off their mortgage. Of the approximately four million homeowners in this group, fewer than two-thirds are planning to clear their loans with regular monthly payments, while 365,432 are planning to use inheritance to pay off their home and similar numbers are planning to use savings and investments.  Meanwhile more than a quarter of a million people (285,714) are planning to sell their homes altogether. The resear...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Retirement

PA360: Crucial advisers can spot all vulnerability characteristics

PA360: Crucial advisers can spot all vulnerability characteristics

‘It is highly likely people in decumulation will have a vulnerability’

Hope Coumbe
clock 26 April 2024 • 1 min read
Inflation shocks driving another long uptick in annuity sales

Inflation shocks driving another long uptick in annuity sales

‘Customers should be careful that this is the right decision for them’

Hope Coumbe
clock 23 April 2024 • 1 min read
Advisers warn market volatility will threaten retirement plans

Advisers warn market volatility will threaten retirement plans

More than half expect clients to postpone or change plans

Isabel Baxter
clock 26 March 2024 • 2 min read