Mortgage free savings window shrinks - Savings - News - Moneyfacts


Mortgage free savings window shrinks

Mortgage free savings window shrinks

Category: Savings

Updated: 07/02/2011
First Published: 07/02/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The length of time that Briton's are mortgage free before entering retirement is shrinking, new research has revealed.

As a result of the smaller window of opportunity to save for life after work, Santander Savings says people are being forced into retiring later.

According to the research, workers who took out their first mortgage in the early 1960s had an average savings window of 21 years in which to concentrate solely on preparing for their retirement.

However, for those who have taken out their first mortgage sometime in the last decade, just 10 mortgage-free years will be available in which to save.

With the gap between becoming mortgage-free and retirement closing in, it is feared those who took out a mortgage in recent years - and those who have yet to do so - may struggle to bank enough cash for a comfortable retirement.

The concerns are heightened by the revelation that those over the age of 55 only save an average of £88 each month, increasing further the pressure to continue working later in life.

"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 Reza Attar-Zadeh, director of savings and investments at Santander.

"This window has more than halved since the 1960s and the opportunity to save is getting smaller and smaller.

"Our advice to people is to start saving as early as possible, even if they put away small amounts every week or month."

For people looking to make regular savings, check out our Best Buy charts for all the latest and greatest savings deals.

Or if you're of more mature years, an over 50s account might be just what you need.

Find the best savings rates for you - Compare savings accounts

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Best savings rates

Get a snapshot of the top best buy savings accounts, fixed rate bonds and cash ISAs to help you get more from your money.

Average five-year fixed bond rate falls below 2%

Long-term fixed rate bonds used to be the top solution for savers looking to get a decent return on their savings, but unfortunately, times have changed, with our latest data revealing that the average five-year rate has fallen to a new record low.

Savings rates plummet to fresh lows yet again

It’s becoming a recurring theme, and unfortunately, it’s showing no signs of stopping. Savings rates have plummeted to fresh lows once again as the impact of the base rate cut continues – and this month, product availability has followed.