Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Six Million UK Adults Lack Retirement Plan for Housing Costs

More than six million people in the UK who expect to pay housing costs in retirement do not know how they will afford them, according to research from Royal London. The study highlights growing concerns about the ability of future retirees to meet rent or mortgage payments as housing costs rise and mortgage terms lengthen.

The research found that around one in three UK adults—equivalent to 18.7 million people—either expect to pay housing costs in retirement or are already doing so. Of the approximately 16 million people who expect to have housing costs in retirement, 39% said they do not know how they will cover their rent or mortgage once they stop working.

Renters and Younger Adults Most at Risk

Renters face the greatest challenge, with 61% anticipating housing costs in retirement, compared to 37% of mortgage holders. Nearly half of renters (45%) expect to be paying rent for more than a decade after retirement, while only 7% of mortgage borrowers expect to be making repayments for that long.

Younger adults are particularly affected. The study found that 44% of people aged 18-34 expect to face housing costs in retirement, compared with 24% of those aged 50-69. Among homebuyers aged 18-34, the average original mortgage term is 31 years, and 43% have mortgages lasting 35 years or more. In contrast, just 2% of current retirees originally borrowed over a term of at least 35 years.

Financial and Regional Disparities

Royal London’s research also shows that those expecting to pay housing costs in retirement have average pension savings of £34,948, compared with £120,682 among those who do not expect such costs. Across all respondents, average pension savings stood at £93,221.

The likelihood of paying housing costs in retirement varies by region. In London, the South East, and the South of England, 34% of people anticipate still paying rent or a mortgage after retirement, compared with 23% in Yorkshire and the Humber. In the North East, more than half (53%) of those expecting housing costs in retirement do not know how they will pay them, higher than the UK average of 39%.

These findings are particularly relevant for letting agents and inventory clerks, as they highlight the growing number of older tenants and mortgage holders who may require long-term housing solutions and support.