The later life lending market will almost double in size over the next decade, as over-55s will go from owing £295bn in 2019 to £548bn in 2029.
That is according to research from the Centre for Economics and Business Research, commissioned by equity release lender more 2 life.
Dave Harris, chief executive at more 2 life, said: “Later life lenders have stepped up to this challenge and we are seeing increased flexibility as well as a wider choice of products designed to cater for today’s retirement lending market.
“However, we must ensure that we do not become complacent and with growing numbers of consumers interested in how they can access their housing equity, it is up to us to lend a helping hand to ensure they are able to enjoy the retirement they deserve.”
Over-65s are expected to individually be in debt by £16,500 by 2029.
As it stands 65-74s have the second lowest amount of net yearly savings (£3,100) after expenditure and income has been taken into account.
This is just over 60% lower than those aged 50-64 (£8,100) and only slightly higher than those under 30 (£3,050).
The research also found that 14% of over-55s have a mortgage on their property; 68% of these individuals report having a repayment mortgage, compared to 23% with an interest-only mortgage.
Homeowners aged 65-74 who are still paying off a mortgage owe an average of £120,000. This is higher than the average for 55-64-year olds currently repaying a mortgage (£113,000).