Mortgage following many into retirement: TISA & KPMG

Data collected by the Tax Incentivised Saving Association and KPMG shows that the average 55-64-year-old carries £36,500 of mortgage debt into retirement.

This equates to an estimated 10 per cent of their property value, says the research.

It also shows that the typical UK homeowner aged 64-75 owes £11,400 on their mortgage, and those over 75, £3,200.

The research also points out that, with defined benefit pensions schemes on the wane, the issue may become worse, with fewer than 40 per cent of retirees’ total pension wealth yet to be drawn being made up of defined benefits.

TISA retirement policy manager Renny Biggins comments: “It is clear that the long-held assumption that your mortgage would be paid off once you reached retirement is no longer a sure thing. Though mortgage debt is still reducing with age cohorts, UK households are having to rely on pension wealth and other assets to pay off their mortgages during retirement.”

“We are also now seeing consumers take out mortgages at a later age and for a longer term, as it takes longer to save for a deposit and it’s harder to afford repayments over the traditional 25 year term.

“The fact is many people about to enter retirement still have a sizeable chunk of their mortgage left to pay. Although auto-enrolment is a positive step forward, it remains a challenge for people in the UK to build up sufficient retirement savings.”


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Regulation could hit challenger bank growth: KPMG

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International Women’s Day: a female chief executive’s perspective

International Women’s Day, celebrated every year on 8 March, should be marked in the calendar of every business leader. It is an ideal opportunity to celebrate women’s achievements in different industries, while at the same time exploring ways to further accelerate gender equality. For it is only through collective action and shared responsibility that we […]

Apple: a stellar technology story

By Ali Unwin, head of technology sector research

Apple recently announced the highest-ever recorded quarterly net profit ($18bn), with the sale of 74.4 million iPhones helping the company deliver $74.6bn of revenue for the quarter ending December 2014. These sales were largely driven by strong demand for the new iPhone 6 and iPhone 6 Plus. Highlights included Chinese iPhone sales doubling year-on-year and unit growth of 44% in the US — supposedly a well-penetrated market. Apple ended the quarter with $178bn in cash on its balance sheet, having generated a staggering $30bn in free cash flow during the quarter.

At Neptune, we have been long-term believers in the Apple story, and continue to hold the stock in a number of our portfolios based on the company’s long-term growth prospects. This is predicated on our belief that Apple has proved thus far that it can — unusually for a consumer electronics company — maintain high margins for a sustained period of time, even as adoption of new technology slows down and competitors produce similar-specification products.


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