Debt among the over-65s is expected to pass the £100bn mark by 2023, according to research by the Centre for Economics and Business Research and equity release lender More 2 Life.
The study also predicts that the UK retirement lending market will to grow to more than £142bn in the next ten years, a rise from £65bn this year, representing an increase of over 120 per cent.
The average total individual debt of 65 to 74-year-olds will rise by £10,000 between 2017 and 2017, to £22,700 the research predicts.
The study drew on financial data contained in the Wealth and Assets Survey produced by the Office for National Statistics, as well as the ‘NMG survey’ produced by the Bank of England. Forecasts took account of population projections, Cebr house price projections and forecasts of the incomes and spending power of retired households.
More 2 life managing director Dave Harris says: “An increasing number of homeowners are entering retirement with outstanding mortgage balances. For these customers – and particularly those on interest-only mortgages without an alternative capital repayment strategy – retirement lending and particularly lifetime mortgages are a financial lifeline.
“For all lenders and product providers in the lifetime mortgage market, this changing demographic provides a great opportunity for growth.”