Retiree mortgage debt soars 31%

Mortgage debt has fallen in the long term by 47% from £70,395 in Q3 2011 to £37,036 in Q3 2015. However, it has increased over the last year by 31% from the £28,318 recorded in Q3 2014, which may be a sign of the interest-only mortgage repayment issue facing some over-55s.

Average personal loans have fallen by 33% in the past four years from £677 in Q3 2011 to £456. Borrowing from family and friends has fallen 15% from £128 to £109 and overdraft debt by 13% from £157 to £137 in the same period.

Over-55s are now seeing the benefit of falling inflation as non-essential spending rises and unsecured debt falls.
 
Typical monthly income for over-55s increased by 5% over the past year from £1,317 to £1,378 in Q3 2015, and by 26% compared to Q3 2011.

Since Q1 2011, there has been significant increases in essential areas of monthly expenditure such as food and travel, as well as a 50% rise in spending on entertainment, recreation and holidays (from £56 to £84).

However, over-55s have also increased the typical amount saved per month to £206 in Q3 2015, up by 67% from £123 in Q3 2011.

The cost of living remains the most commonly perceived threat by over-55s to their standard of living in the next five years, with almost half (47%) citing this as a concern in Q3 2015. However, this have fallen significantly from 73% in Q3 2011 and 52% in Q3 2014.

The second most common concern is the threat of unexpected expenses (36%), followed by the death of a partner, with 19% citing this fear in Q3 2015 compared to only 6% in Q3 2011.

In contrast, over-55s are more confident on the returns on their savings and investments than four years ago. Just 19% were concerned about falling returns on savings in Q3 2015, compared to 34% in Q3 2011, while 14% were worried about their investment returns, down from 24% in Q3 2011.