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17% Of over-55s say lifetime loans could fund retirement

Millions of pensioners’ retirements are being jeopardised by the unexpected costs that come after they stop working, says Prudential.

It says 3.75 million pensioners are struggling to live the life they expected.

Prudential says that for the average person in the over-55s category, the “magic sum” that would make a real difference to their retirement would be an extra 7,300 a year while one person in three says they will need 10,000 a year more for a comfortable retirement.

Of the 1,108 adults questioned, 75 per cent say they still have ambitions they want to fulfil but 42 per cent say they are not likely ever to be able to carry out these plans.

Children and grandchil-dren were cited as the bigg- est unexpected cost by 40 per cent. Home improvements and maintenance were the biggest cost for 30 per cent and 20 per cent say med- ical bills.

The research shows that 17 per cent of over-55s would consider a lifetime mort- gage to help them achieve their retirement ambitions compared with just 7 per cent in 2003.

Director for lifetime mortgages Ali Crossley says: “When you put yourself in the shoes of a pensioner, it is really easy to see how unexpected costs can jeopardise retirement ambitions.

“It is really upsetting to see that nearly half of the over-55s questioned in the survey think that they will never be able to live out their dreams because they do not have the money.

“Many of these people do not realise that there is ano-ther source of income they can turn to – their property. With the recent house price rises, there is 693bn tied up in equity and this money could be released using a lifetime mortgage.”

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