Recent surveys suggest that the length of time before entering retirement is getting shorter for an average British citizen. Since the time to settle their existing mortgages are getting longer, it effectively means that people are working longer and delaying their retirement.
People may struggle to save enough before retirement since the tenure between getting mortgage-free and retirement is getting shorter.
“For many people the period when they are still in employment but mortgage-free represents a golden opportunity to get some cash in the bank in preparation for retirement”, said the Director of Savings and Investment Reza Attar-Zedah at Santander.
“This window has more than halved since the 1960s and the opportunity to save is getting smaller and smaller”, she added.
In a separate development, the Council of Mortgage Lenders (CML) welcomed the Treasury Committee’s view that authorities show prudence to ensure that reforms initiated are “effective but proportionate”.
The industry trade body said that it supports the Treasury Committee’s view that “it is more desirable that the government gets these reforms right than sticks to an arbitrary timetable”.