According to a recent report by the Institute for Fiscal Studies (IFS), many in their 50s and early 60s do not have adequate planning for their future pensions. This will mean that those planning on getting a retirement mortgage might struggle if their personal pension income or savings are not sufficient. This may because of little financial planning, which based upon this report, would suggest a significant number have done.
The findings, part funded by the National Association of Pension Funds (NAPF), show nearly 60% of people aged 50 to 64 have not given much thought about how many years they will be retired for, and with that the funds required for such a length of time.
The research found that generally people are underestimating their life expectancy, and overestimating how far their current savings will stretch. Moreover, around 25% of people aged 50-64 will need to save an additional £60,000 before their retirement in order to meet their retirement income expectations. A startling statistic is that 32% of 52-64 year olds were not sure what their private pension income will be.
With this lack of planning for retirement by a significant number of 50 to early 60 year olds, some of those hoping to obtain a retirement mortgage might come into difficulties.
