Research from Aegon reveals that 14 per cent of people with a mortgage believe that they will still be making payments at 70.
It also finds that 42.5 per cent of those who do not own a home expect to still be renting when they reach 70.
Aegon pensions director Steven Cameron says: “Paying off your mortgage in time for your 70th birthday is now far from a given… a combination of getting on the housing ladder later, higher house prices and the ability to borrow for longer mean that one in seven people expect to be repaying their mortgage into what would normally be considered retirement years.”
Figures collected by the government’s Department for Work and Pensions for its Family Resources Survey 2016/17 confirm the statistics driving this changing attitude towards housing.
In the last ten years, the number of households buying with a mortgage has declined from 37 per cent to 28 per cent. Within this group, those buying aged 25 to 34 shrank from 18 per cent to 7 per cent.
In addition, the total amount of households renting privately has risen from 13 per cent to 20 per cent, and in the age bracket 35-44, from 13 per cent to 26 per cent.
Commenting on this, Cameron strikes a note of warning: “With younger generations finding it harder to get on the property ladder, the UK is set to lose its claim of being a nation of homeowners as the population of lifetime tenants continues to rise… [but] renting while working is a very different situation to renting when retired. People need to consider how feasible it is to fund rent when they are no longer earning a salary. It would be dangerous to assume the state will continue to provide the same level of housing benefits to future retirees as they currently pay.”