According to research from Key, which surveyed 1,000 adults who were aged 55-plus, approximately 22% said they were extremely or very worried about whether they had enough retirement income to live on.
Almost two-thirds said that they will have to run down their savings and 41% are concerned about the risk of having to take on unsecured debt such as loans or credit cards to bolster their retirement income.
The study found that around 64% of over-55s own their home outright and a further 14% have a mortgage on their home.
The average amount owed came to £69,000, while the average equity was £311,000. A quarter of those surveyed had £400,000 or more in the form of equity.
The report found that around 12% of those with mortgages still owed more than £150,000 compared to the average £69,000.
Around 65% were worried about paying their mortgage into retirement and the impact it will have on their retirement income, and half were worried about keeping up with mortgage payments or paying them off.
Only 11% said that they planned to use lifetime mortgages or retirement interest-only (RIO) deals, but less than half were aware of their later life borrowing options.
Key said that saving retirement income against the cost-of-living pressure is a “major cause of concern” for many over-55s and urged them to consider later life lending options.
Chris Bibby, managing director at Key, said: “The pressures of the cost-of-living crisis may be easing, but it is leaving a legacy for over-55s homeowners who have seen their finances suffer at a crucial time for retirement planning.
“Despite sitting on considerable property wealth at an average [of] £311,000, many homeowners are very worried about their retirement income and whether it will last the duration, let alone deliver the standard of living they want.
“Over-55s should seek specialist advice on the growing number of options available to them, which could provide a better outcome than those offered by high street lenders. There are more flexible ways to manage mortgage debt in retirement that could provide better outcomes from many homeowners to live the retirement they want.”
Previous research from Key has found that many over-55s are considering returning to work or downsizing to bolster retirement income and combat the cost-of-living crisis.
