Pension Woes – One in Five Retired Brits Struggling Despite Owning Their Homes

It’s a nightmare scenario: you’ve paid off your mortgage, you’re finally retired, but you’re still struggling to make ends meet. And shockingly, new research shows that this is the reality for one in five British retirees.

A new study by Senior Capital, which surveyed over 2,000 people, has revealed the financial struggles facing many retirees. Even with their mortgage paid off, a whopping 21% of retirees admitted they are “unable to live fulfilling lives” because they don’t have enough money in their pension pots.

The situation is even worse for some:

  • 22% are cutting back on essential medications.
  • 15% are skipping meals.
  • 11% have absolutely no savings at all.

The report also found that almost one in five retirees are living below the poverty line because they don’t have enough money to live on.

It’s no wonder that one in seven retirees said their biggest worry is how to fund their retirement.

Is the Government Doing Enough?

Prime Minister Rishi Sunak recently promised a tax-free pension allowance that could save pensioners £275 by 2030. But experts are saying this might not be enough to tackle the growing problem of poverty in retirement.

Equity Release – A Better Solution?

Senior Capital believes that equity release could be a much better solution for pensioners struggling financially. Equity release allows homeowners to borrow against the value of their homes without having to sell up.

Rudy Khaitan, Senior Capital’s managing partner, explained: “Equity release can be the better option versus a more traditional mortgage when you want to unlock the value in your home without taking on additional monthly repayments.”

He added that equity release can provide retirees with a “tax-free lump sum to supplement regular income,” while still letting them live in their homes for life. This could be a lifeline for those struggling to make ends meet.

A Growing Problem

The problems facing retirees are getting worse. A recent study by the Equity Release Council found that a fifth of people don’t expect to be mortgage-free when they retire.

This is a growing problem, and it’s one that needs to be addressed urgently. With more and more people facing financial hardship in retirement, is it time for the government to look at new solutions to help people live their golden years with financial security?