Rising interest rates coupled with the growth in property prices in recent years have meant that many people could be paying off their mortgage for longer than they initially anticipated. In fact, some may still be making their monthly repayments after they have retired.

FTAdviser reports that 1 in 6 people expect to repay their mortgage after they reach State Pension Age (66 in 2023/24, rising to 67 by 2028). What’s more, nearly 1 in 10 individuals said they expect to be over 70 when they pay their mortgage off, or that they will never fully repay it.

While continuing to repay your mortgage into your retirement isn’t necessarily a bad thing, it does mean you will need to include your repayments when calculating your income needs in later life. This could lead to you using more of your pension than you might have planned to in the early years of your retirement.

Moreover, if you haven’t paid off your mortgage before you pass away, it could reduce the inheritance you’re able to leave behind. Your loved ones will need to pay off any outstanding debts when selling your home, reducing the amount they inherit from you.

If you’re concerned about the financial pressure that mortgage repayments could put on your retirement income, read on to discover some practical ways to ease the burden.

Overpay on your mortgage to clear the debt sooner

By making overpayments on your mortgage during your working life, you could reduce the amount that you owe when you come to retire.

Even if you don’t manage to pay off the mortgage entirely before retiring, you could reduce the number of months you’ll have to make your repayments in later life as you’ll clear the debt sooner.

This could mean you won’t have to worry about mortgage repayments for as long into your retirement as you initially thought.

Remember that some lenders have early repayment charges in place, so check the terms of your agreement before making overpayments.

Look at ways to generate additional income

If it’s not possible to reduce your monthly repayments, it may help to consider how you could boost your income until the mortgage is paid off.

This might mean continuing to work for longer than you initially planned to, perhaps staying in your full-time job or considering a phased retirement.

A phased approach to retirement has been growing in popularity over recent years. Legal & General reported that, at the end of 2022, almost half of over-55s who were still in work expected to take a phased retirement.

This could involve:


  • Taking a new part-time job
  • Reducing your hours at your existing job
  • Working as a freelance consultant or setting up your own business.


A phased retirement has the benefit of helping you to maintain a level of income above your pension as well as enabling you to ease yourself into retirement. As you approach the end of your mortgage term, you may feel more confident reducing your hours further or stopping work altogether.

Downsize your home

Another option to help ease the financial strain of a mortgage could be to downsize your home.

When you downsize, you could reduce the amount that you owe on your mortgage, as it typically involves moving to a less expensive home. In some cases, you could even free up enough cash to pay it off entirely.

Downsizing can feel like a daunting prospect as your home often has a sentimental value that is far greater than its financial worth. You might dream of keeping your home in the family for generations to come.

That’s why it is important to reflect on your priorities for the future before deciding what the most suitable course of action is for you and your family.

Financial planning could help mitigate the effects of mortgage repayments on your retirement income

While the above options could all help to reduce the financial strain of mortgage repayments in retirement, the most suitable course of action for you will depend on your circumstances, priorities, and goals.

That’s why it can be helpful to consult a financial planner for advice about how you can manage your expenses while also planning for a retirement you can enjoy.

Standard Life reports that 96% of people who sought financial advice before retiring were enjoying their retirement compared to 72% of people who did not. Moreover, those who took financial advice felt confident they could fund their retirement lifestyle for 23 years, compared to 17 years for those who did not take advice.

Your planner can help you build an effective plan so you can achieve your goals in retirement.

Get in touch

If you’d like help managing your money ahead of your retirement, please do get in touch with us at Cordiner Wealth.

Email hello@cordinerwealth.co.uk or call 0113 262 1242 to speak to an experienced adviser today.

Please note

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.

Buy-to-let (pure) and commercial mortgages are not regulated by the FCA.

Think carefully before securing other debts against your home.