One in five Irish people expect to be still paying off their mortgage in retirement, according to a new survey.
The study by Royal London Ireland, the Irish subsidiary of pensions and life insurance group Royal London, examined people’s expectations about owning a home by the time they reach the State retirement age of 66.
It found that almost a third of people (35%) in Ireland did not expect to own a home “outright” by the time they retire, while more than a fifth (21%) expected they would still be paying off their mortgage in retirement.
More women than men (23% versus 18%) expect they will not be free of their mortgage by the time they retire. Around 14% of respondents said they did not expect to own a home or be paying a mortgage on one when they retire.
In contrast, almost two-thirds (65%) of adults believe they will own their own home in retirement.
The survey’s findings come amid a significant fall-off in home ownership rates in Ireland, particularly among people of a prime working age. Research by the Economic and Social Research Institute (ESRI) shows the share of 25 to 34-year-olds who own their own home more than halved between 2004 and 2019, falling from 60% to just 27%.
The survey indicated that those over 55 were the most confident about their ability to own their own home by the time they retire, with 80% of this age cohort feeling this way. This compared to just over half (52%) of those aged 18-24 and fewer than six in 10 (57%) of those aged between 25 and 44.
“The age at which first-time buyers get on the property ladder continues to creep ever higher,” said Daragh Feely, sales director at Royal London Ireland.
“The number of first-time buyer borrowers aged over 35 increased to 44% last year – from 36% in 2019 and only 17% in 2004,” he said.
“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 on to 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,” said Mr Feely.
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