While most Irish people (60%) with a mortgage on their homes expect it will be fully repaid by the time they retire, over 783,000 people (27% of those surveyed) will still be paying off their mortgage or paying rent in retirement. This is highest amongst those aged between 35-44 years at 36.5%.
This is according to new research from Aviva Life & Pensions Ireland DAC (Aviva) as part of a nationwide study conducted as part of the iReach Consumer Decisions Omnibus Survey with 1,400 respondents.
It is estimated that 21.5% of those surveyed aged 55+ also expect to be paying off their mortgage or continuing to pay rent in retirement. Women are more likely than men to be paying their mortgage or rent in retirement at 28% v’s 25%.
The remaining 13% of those surveyed believe they will inherit a property and will be living mortgage free when they retire, with more men than women having this expectation (17% v’s 10%).
Almost half (44%) of those surveyed believe that they will most likely have to take up another full or part-time job to supplement their income in retirement, 10% of whom will be seeking a full-time position. While 31% of respondents claimed that they won’t need to work in retirement to supplement their income, 25% said that, while they may well take up another job, it would only be because they enjoy working.
Respondents were asked what the top three things they were most looking forward to in retirement, with foreign travel topping the list at 64%, followed by spending time with family (61%) and with friends (45%). Other popular choices included eating out (36%), hiking and walking (30%), gardening (26%), DIY activities in the home (20%), playing golf (11%) and other sporting pursuits coming in at 8%.
Commenting on the research, Stephen Rice at Aviva said, "Our research findings highlight some very real societal issues that need to be debated at policy and governmental level if we are to avoid people living in poverty in retirement or being forced to work well beyond their normal retirement age. The expectation with previous generations was that they would work hard, save up and buy their own homes and, by the time they retired, their mortgage would be fully repaid. As such, they believed that their day-to-day expenses would plummet in retirement."
He added, "However, the landscape has changed dramatically as, with rising house prices, high rents, and the need for a substantial deposit, those lucky enough to be able to get on the property ladder are doing so later and with extended mortgage terms that they are likely to be paying off into retirement. It is also likely that the number of long-term renters will continue to grow as they simply can’t get on the property ladder and will continue to have to pay rent, up to and including in retirement."
Source: www.businessworld.ie
