Pensioners face mortgage bombshell and still paying off homes into retirement

Around 450,000 over 65s are still paying off the cost of their homes into retirement, according to official figures.

Half of those have savings and investments of under £3,000 to rely on with some having nothing set aside at all.

Shadow work and pensions secretary Jonathan Ashworth said: “Older people are at the sharp end of the Tory cost of living crisis due to soaring energy bills and out-of-control inflation.

“For 450,000 pensioners, the Tory mortgage bombshell risks being a further hammer blow to their life savings and living standards.”

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Labour analysis of government records found the number of mortgaged pensioners without any savings has risen by a third. 

In 2019-20, there were around 50,000 older people without a rainy day fund but that rose to 70,000 two years later. 

Half of all pensioners with a mortgage had savings of £3,000 or less in 2021-2022, compared to 43 percent in 2019-20.

Silver Voices director Dennis Reed said older people were having to extend mortgages to cope with the cost of living crisis.

He added: “Lots of older people are asset rich and income poor and their incomes are fixed.

“These figures show the need to keep the triple lock in place because unless state pensions rise in line with inflation, people will struggle to make ends meet.”

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Minister for Pensions Laura Trott said: “Labour failed to give pensioners a fair deal when they were last in office and Sir Keir Starmer’s £28 billion plan for borrowing would drive up inflation and interest rates, leaving borrowers worse off. 

“Only the Conservatives will protect pensioners, safeguarding the pension Triple Lock and delivering the largest cash increase in the State Pension ever earlier this year.

“Alongside this support, our Mortgage Charter protects vulnerable families, and we will continue working to halve inflation, an essential step to bring down pensioners’ interest rates and bills.”

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