A survey from specialist insurer Partnership revealed a significant number of people expect to be making average monthly mortgage payments of £514 a month or 47% of retirement income when their work lives are over.
Equally, many will still be renting with 35% of households in England living in social or private rental accommodation, so many will need to meet those average costs of £399 a month.
According to HMRC, the average UK retirement income is £13,000
On top of basic housing costs, retirees also have to meet other costs such as council tax at £115 per month, utilities at an average £109 per month and general property maintenance at £ 66 a month.
Mark Stopard, head of product development at Partnership, said: “Most people aim to own their own home by the time they retire but the trend towards remortgaging, purchasing later in life and being kept off the housing ladder by high house prices means that this is out of reach for almost a third of people.”
He continued: “When people consider their retirement, it is vital that they look to reduce their mortgage borrowing as much as possible. No one wants to worry about cutting back on essentials such as food and heating to meet housing costs when they should be enjoying retirement.”