The current cost of living crisis facing the nation is affecting certain demographics a little more deeply than others. While we are all certainly impacted by this issue, the over 55 age group seems to be keenly impacted. Could this cause an entire generation’s financial plans to derail?
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Mortgage plans affected
Higher mortgage rates and increased cost of living expenses mean that many borrowers are having trouble affording their monthly repayments. One of two outcomes usually comes from situations like this: either borrowers need to reduce their spending and stick to a tight budget or they risk defaulting on their mortgage.
Over 3.3 million over-55s still have a mortgage to repay, and according to Key, the UK’s largest equity release adviser, nearly a third (30%) feel that their ability to pay their mortgage is severely hampered in the current economic climate. Sixteen percent of those who are still in repayment plan to be mortgage-free by retirement, but are concerned that it will be harder or take longer to get there.
Even though more people are planning to pay off their mortgage before they retire, it seems as if working longer is the solution in order to make that happen. Even the 40% of over-55s who have paid off their mortgage are worried about their finances, and some even anticipate having to borrow money in the future to maintain their desired retirement lifestyle.
Facing the challenge head-on
The over-55s age group certainly have the deck stacked against them as they try to achieve their financial goals despite the rising cost of utilities, groceries, and other essentials eating up more of their income than ever before. For those who have already been living frugally, this might make the situation untenable.
People in this vulnerable age group might already be struggling to ensure they have enough money saved for retirement after the last few years and a continued cost of living crisis will only make it harder.
Ready to protect your hard-earned future lifestyle?
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