More than one-third (35pc) of adults in Ireland do not expect to own a home outright by the time they retire. One in five (21pc) expect to still be paying off their mortgage in retirement (when aged 66+), while the remainder (14pc) simply said they won’t own a home or have a mortgage on one at that stage.[1]
These insights are according to a nationwide survey[2] of 1,000 adults by Royal London Ireland, one of Ireland’s leading life insurance and pensions companies.
The headline findings from the Royal London Ireland survey, which examined the extent to which people believe they will own a home by the time they reach the State retirement age of 66[3], reveal that:
- Two thirds (65pc) of adults in Ireland believe they will own their own home in retirement.
- More women than men (23pc versus 18pc) expect to be still paying off their mortgage into retirement.
- Those over 55 were the most confident about their ability to own their own home by the time they retire, with 80pc of this age cohort feeling this way. This compared to just over half (52pc) of those aged 18-24 and less than six in ten (57pc) of 25-34 and 35-44-year-olds.
- One in ten (10pc) of those aged over 55 expect to be still repaying their mortgage when they retire, while another one in ten (10pc) say when they are retired, they won’t own a home or have a mortgage on one. By comparison, four in ten (40pc) of 18–24-year-olds expect to still be paying their mortgage in retirement and 8pc of this age cohort believe they will never own a home. Interestingly, this is a lower figure than the 10pc of those aged 55+ who expect not to own a home or have a mortgage on one in retirement.
Commenting on the survey findings, Daragh Feely, Sales Director at Royal London Ireland, said:
“The age at which first-time buyers get on the property ladder continues to creep ever higher. The number of first-time buyer borrowers aged over 35 increased to 44pc last year - from 36pc in 2019 and only 17pc in 2004.[4] The median age of first-time buyers is now aged 34, according to the latest figures from the Banking & Payments Federation Ireland (BPFI).[5] The latest CSO figures show that anyone buying a home with a mortgage, not just first-time buyers, the median age has risen from aged 33 in 2010 to 37 in 2021.[6]
“The measures announced in Budget 2025 – such as the extension of the Help-to-Buy scheme and mortgage interest relief - will hopefully help first-time buyers to get onto the property ladder earlier and manage the mortgages they take on. However, if the trend of buying homes later in life continues, this is likely to put more pressure on some mortgage holders, as they have less time to pay off their home loans. As a result, there is an increased risk that people may have to continue paying off their debts into their retirement years. This in turn would eat into their retirement income. Indeed, people now have the option to take out mortgages that run well into their retirement because in recent months, a number of lenders[7] have started to offer mortgages that can be repaid up until the age of 80.
“And yet, it’s interesting to note that between 50 and 60pc of people between the ages of 18 and 34 believe they will own their home outright in retirement. This figure is perhaps higher than we would have expected given the country’s present housing landscape and the well-known struggles facing many First Time Buyers when taking their first step on the property ladder.”
“There are many reasons why people may buy their home later in life – the price of houses in Ireland today means that it often takes time to become financially ready to buy one, while lack of supply is also a big issue – though the record €6bn in capital investment in housing announced in Budget 2025 should help boost supply, including of more affordable homes.[8]
“In a perfect world, people would be able to clear their mortgage before they retire. However, this isn’t always possible and some people really struggle to make ends meet after they come to the end of their working life and they are no longer earning. Almost one in ten (8.8pc) of retired people are at risk of poverty[9] and this figure could increase if more people in Ireland find themselves repaying their mortgage into retirement.”
Experts from Royal London Ireland report that, perhaps unsurprisingly given that average house prices in the capital are higher than elsewhere, those living in Dublin were most inclined to expect to be still repaying a mortgage when they reach retirement. 29pc of Dubliners expressed this sentiment compared to 14pc of those living in Connacht and Ulster and a nationwide average of 21pc.
Daragh added:
“Life is unpredictable so it’s important that we take the steps needed to ensure that we have sufficient income and financial security in retirement. This would include covering ongoing mortgage repayments, if necessary, alongside covering the routine costs of daily living and enjoying retirement. This is why it is so important to have an adequate pension pot built up by the time you retire and to ensure you save the right amount into your pension while working.
“Taking full advantage of the tax relief on pension contributions when saving for retirement makes it much easier to build up an adequate pension pot, as it substantially reduces the cost to people of pension contributions. A well-planned and adequately resourced pension should give people the income they need to be able to live comfortably in retirement.
“Additionally, the tax-free lump sum available from pensions at retirement could also be used to achieve key goals such as clearing a mortgage. The most important thing is to have a full awareness of your financial requirements and needs in retirement, and then putting a plan and actions in place well in advance of finishing your working life. Talking to a Financial Broker will help you to put a financial plan in place, to help with providing an income that meets your specific needs in retirement”.
[1] Non-retirees only.
[2] Of 1,000 adults in Ireland nationwide carried out by iReach.
[3] The age at which people qualify for the State pension.
[4] See page 4 of BPFI Mortgage Market Profile Report H1 2023.
[5] As per BPFI Mortgage Market Profile Report H2 2023, published in June 2024.
[6] As per CSO’s Characteristics of Residential Property Purchasers - Estimates of Mortgage and Non-Mortgage Transactions 2021, published in April 2023.
[7] Including ICS Mortgages and MoCo.
