New research from over 50s experts SunLife reveals a growing retirement poverty postcode lottery across the UK, with older people in some regions facing far greater financial strain than others.
SunLife surveyed 2,000 people aged 50 and over and discovered stark regional differences in how financially secure people feel as they approach or enter retirement.
While overall, seven in 10 (73%) over 50s have private pensions, rising to 75% in the South West, 76% in the South East and 83% in Northern Ireland, in the North West 30% of over 50s have no private pension savings at all. Average incomes in the region are also lower at less than £25,000.
London also stands out for its financial vulnerability; just 55% of over 50s in the capital own their homes — the lowest rate in the UK — leaving many more exposed to housing costs later in life. Average income for over 50s in London (£31,164) is also lower than many other regions, including Scotland (£31,399) and the South East (£31,169) despite significantly higher living costs.
Half of over 50s burdened with debt – one in seven still have mortgages
Despite the assumption that most older people have cleared their mortgages, SunLife’s data suggests that 14% of over 50s are still paying them off. This rises to 20% in Northern Ireland, 19% in the North West, and 16% in both Yorkshire and East Anglia. These homeowners face mounting monthly repayments – £887 a month on average – that can eat into already tight retirement budgets, especially in areas where income levels remain low or debt levels are high. For example, the average mortgage payment for over 50s in London is £1,230. Across the UK, 48% of over 50s have some form of debt – from credit cards and overdrafts to personal loans and mortgages. That figure rises to 52% in the South East and 51% in London.
Cost of living remains the top concern
Across the board, the cost of living is the number one concern for those approaching or living in retirement. In Northern Ireland (74%), Scotland (71%), and the East Midlands (68%), that anxiety is particularly acute. While fewer Londoners (56%) cite the cost of living as their top worry, a significantly higher proportion are concerned about long-term financial security with almost four in 10 (38%) saying that running out of money in retirement is one of their top financial concerns – above the UK average of 34% – while one in five (21%) are most concerned about outstanding debts. In contrast, 24% of over 50s in the North East, 21% in East Anglia, and 15% in the South East say they have no financial concerns at all.
Mark Screeton added: “Our research shows a clear ‘postcode lottery’ when it comes to retirement, where people’s ability to enjoy later life appears to be impacted by where they live. Whether it is mortgage repayments dragging into retirement or higher levels of consumer debt, older people in some areas are facing greater financial concerns than others. In London particularly there seems to be a ‘perfect storm’ of low homeownership, high debt, below-average income, and financial anxiety, all at a time in life when many would hope to feel more secure. For homeowners over 55 — even those with an outstanding mortgage — equity release could offer a way to clear debts, stop monthly repayments, and unlock the value in their home without having to move. Most people release between 20% and 60% of their property’s value, but exactly how much you can release depends on a number of factors. For those living on a limited income, it can be a lifeline that eases the pressure of mortgage or loan repayments in retirement.”
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