Six out of ten Britons believe they will be forced to work well past the age of 70 as a result of their mortgage payment responsibilities, new research indicates.
Yorkshire Bank has found more than half (52%) of mortgage holders believe they will not save sufficient funds for a comfortable retirement, due to their mortgage commitments.
The bank also found that 36% of mortgage holders do not believe they will be able retire early, while 24% of respondents have no financial retirement plan at all.
Gary Lumby, Yorkshire Bank’s head of personal financial services, says it is ‘worrying’ that so many people currently have no financial retirement plan, while house price growth in recent years has meant that many homeowners' mortgage responsibilities are leaving them with insufficient income to invest for their future.
“Affording to move up the property ladder has homeowners taking out loans that will see them repaying them up to, and in some cases beyond, retirement age, leaving them with little time to ramp up the money they can afford to plough into funding their retirement,” he says.
The research was conducted on a sample of more than 1,000 people nationwide during December 2004.IFAonline
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