Up to one million people nearing retirement age still owe money on their mortgage, according to a new report.
The latest research from LV= looking at the finances of retirees reveals that less than one in four over-50s were planning to seek professional financial advice before they retire.
These numbers are worrying ahead of the government’s pension changes next month which will give people the chance to use their retirement savings as they wish.
LV= said that a third of people do not understand the new rules or how the changes will affect them.
Some may simply not be able to invest another property as a way of providing a monthly income with a million mortgages yet to be fully repaid by retirees.
It is estimated that more than four million current retirees have outstanding debts, with more than half of these owing money on credit cards.
A spokesman for LV= Retirement Solutions, said: “In just a few weeks those approaching retirement will have even more choice as to how they take their pension income. This is a great opportunity for pension savers and the men and women who take advantage of these new rules could significantly boost their income.
“We would always encourage people to seek financial advice to ensure they make the most of the savings they have spent a lifetime building. We believe that it is crucial that the industry works together to demonstrate the value of guidance and advice to savers.”
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