According to research from SunLife’s Life Well Spent 2025 report, the amount of average debt left to repay rises to £33,590 for homeowners.
The report noted that mortgage debt is the biggest burden, with the average mortgage balance left to repay sitting at £67,538, with monthly repayments estimated at £842.
| 2025 | 2024 | |
| Outstanding mortgage | £67,538 | £68,791 |
| Car finance | £11,375 | £9,982 |
| Personal loans | £5,793 | £6,393 |
| Credit cards | £3,922 | £3,887 |
| Money borrowed | £3,870 | £4,178 |
| Overdraft | £1,575 | £1,377 |
| Store cards | £1,067 | £1,003 |
The second-largest expense was car finance at £11,375, followed by personal loans at £5,793.
Credit cards on average made up £3,922, while money borrowed came to £3,870 and overdrafts stood at £1,575. Store cards made up around £1,067.
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SunLife said nearly a third of over-50s have credit card debt, one in 10 hold personal loans, 8% have overdrafts and 6% are managing car finance.
The report found that financial pressure was most acute in London and the South East, but strain was being felt nationwide.
Over half – 56% – of over-50s said they believe clearing debts would make them more content and 84% of those who have done so have “significantly increased happiness”.
Equity release awareness improving and could be key tool for clearing debt
SunLife said 80% of over-50s were aware of equity release and 13% were considering it, with homeowners seeing it as a way to boost their finances without selling.
The report noted that those who used equity release unlocked an average of £69,982, with 36% using the funds to pay off debts and 44% to improve their homes.
More than three-quarters said using equity release made them happier.
SunLife said that on average, homeowners who would consider equity release would release around £81,000, either to clear debt, boost income or help loved ones. Others would use it for home improvements or life experiences such as travelling.
SunLife said increasing rates and the cost of living meant many could find themselves paying off their homes well into retirement, while some could delay retirement or have to cut back on spending to keep up with mortgage payments.
Mark Screeton, CEO of SunLife, said: “Many over-50s have worked hard for decades yet still find themselves with some debt. The rising cost of living and ongoing financial commitments can make it hard to enjoy the retirement they’ve planned.
“For some homeowners, equity release could offer a practical and empowering way to unlock some of the money tied up in their property to pay off debts, support family or simply live more comfortably.
“At SunLife, we want people to feel confident about their financial future. For those who would like to explore equity release, a financial adviser will advise you as to whether it’s the right option for you and your specific circumstances.”
