Over-55s homeowners are becoming increasingly worried about their retirement income, research from Key Later Life Finance has warned.

This comes despite this group sitting on an average £311,000 in equity and one in four owning £400,000.

Key’s nationwide study found that 64 per cent of over-55s own their home outright with a further one in seven (14 per cent) owning their home with a mortgage. The average amount owed on home loans by over-55s is £69,000, the research found.

However, the pressures of the ongoing cost of living crisis have seen worries on the rise about whether their retirement income will be enough to live on. Key revealed that 69% of the 1,000 over-55s questioned were worried to some extent, with 22 per cent admitting being extremely or very worried.

Two in three respondents (66 per cent) to the study were worried to some extent that they will have to run down their savings while 41 per cent were concerned about the risk of having to take on unsecured debt such as loans or credit cards.

“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,” said Key managing director, Chris Bibby.

“Despite sitting on considerable property wealth at an average £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.”

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