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There are ways to review your finances in retirement, including managing debt and exploring options to support a comfortable lifestyle.
Having unwanted debt is a prospect no one wants to face when planning for retirement, but it could happen to anyone.
Homeowners may continue to pay off mortgages and support their family later in life. Some do not have a company or private pension to top up their state pension, and for some, state pension may not be enough to cover essential living costs.
Retirement Living Standards, developed by Pensions UK, describe a minimum standard of living in retirement that focuses on covering essential day to day costs, with limited flexibility for non essential spending. According to the 2025 Retirement Living Standards, a single person needs around £13,400 a year to meet this minimum level.
Regular outgoings might make it difficult to save for the long term, and many people could end up with less money than they had hoped for in retirement.
As people approach or move through retirement, it can be helpful to take a step back and look at how any ongoing financial commitments fit into their wider plans. Different types of borrowing can work in different ways, and understanding the basics may help people feel more informed about their options.
Some financial commitments, such as mortgages or regular household bills, are typically linked to essential living costs, while others may be more flexible. Having an overview of regular outgoings and how long they are expected to run for may form part of broader financial planning considerations.
If someone has more than one borrowing arrangement for example, mortgages, credit cards or personal loans, they may find it helpful to consider how manageable these commitments are alongside their retirement income. In some cases, people review how their repayments are structured or how many separate commitments they have, although what is suitable will depend on individual circumstances and will not be right for everyone.
It's important to remember that different options can have different long term implications, including the total amount repaid over time or the impact on future financial flexibility. Information about borrowing and repayments is widely available, but individual circumstances vary, so people may wish to seek independent guidance before making changes. Free, independent debt advice is also available from organisations such as MoneyHelper or StepChange, which some may find useful when considering their wider financial position.
The options mentioned here are for general information only and are not financial advice. They form part of the wider considerations someone may take into account when reviewing their financial position and are not services provided or advised on by the Telegraph or Royal London Equity Release Advisers.
For some older property owners, downsizing to a smaller and less expensive home could generate a large sum of money. Not only could your outgoings on bills fall but depending on the difference in price between the properties, there may be a large pool of value going untapped which you would then be able to access.
However, not everyone wants to move, as the costs associated with doing so, coupled with the emotional stress of leaving your family home, could outweigh any benefits. If you prefer to remain in your own home, another way to free up cash is to release a portion of its value with equity release.
If you're a UK homeowner aged 55 or over, equity release may allow you to access some of the value tied up in your home as a tax free cash lump sum. The most popular type of equity release product is a lifetime mortgage, which is a loan secured against your home.
With a lifetime mortgage, monthly repayments are optional unless you choose a plan with required repayments. Interest is added to the loan over time, which means the amount you owe can increase. The loan plus interest is typically repaid when the last homeowner passes away or moves into long term care, usually through the sale of the property.
It's important to note that releasing equity from your home is a long term commitment. It will reduce the value of your estate and could affect your entitlement to means tested benefits. A qualified adviser will explain the features and risks to help you understand how it may apply to your circumstances.
Learn more about how much you can release with the lifetime mortgage calculator.
A lifetime mortgage is a way to access wealth locked in your property's value, so speaking to an expert adviser could be your next step. For those dealing with financial uncertainty in later life, exploring different options to make retirement fulfilling could be critical.
To support homeowners who may be exploring ways to access funds in retirement, Telegraph Media Group has chosen Royal London Equity Release Advisers to share information on how property wealth could be used to support later life planning. As of March 2026, repaying an existing mortgage or unsecured debt is a common reason customers explore equity release. This is often linked to a desire to simplify finances in later life, particularly as people approach or move through retirement.
You should know that by consolidating your debts into a mortgage, you might pay more in interest than you would with your existing debt.
Learn more about equity release interest rates.
There are billions of pounds of benefits going unclaimed each year. The latest official estimates show that £1.33bn of Pension Credit went unclaimed in the financial year ending 2023.
You could have access to wider benefits than you realise. Attendance allowance, council tax support, free local travel, housing benefit and carer's allowance could all be things potentially available.
Whether equity release can help will depend on how much you are able to release. To get this estimate, you can use the equity release calculator. When using the calculator, you can choose to provide a phone number. If you do, a member of the Royal London Equity Release Advisers Information Team may give you a call.
The Information Team does not provide financial advice, but they can help answer general questions about equity release and explain what happens next. If you decide you’d like to explore things further, they can also help arrange a free, no‑obligation appointment with a qualified equity release adviser, who can provide advice and discuss whether a lifetime mortgage may be suitable for your circumstances.
Check if you are eligible for the state pension and how much you will receive by using the government’s online service. If it does not look enough to sustain your lifestyle, you should consider looking into what benefits you might be entitled to.
According to the Retirement Living Standards, the amount of money needed in retirement will vary depending on whether you're living alone or as a couple, and the lifestyle you want. Based on current estimates, retirement spending could look like this:
Figures are indicative and based on industry research. Individual circumstances will vary.
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The above article was created for Telegraph Media Group Financial Solutions, a member of Telegraph Media Group. For more information please click here.
Equity release is only available to homeowners that own a property within the United Kingdom.
If you choose a mortgage with required payments during your lifetime, your home may be repossessed if you do not keep up with the payments. Borrowing with a lifetime mortgage or retirement interest-only mortgage will reduce the value of your estate. Receiving a cash lump sum may also affect your entitlement to means-tested benefits. Think carefully before securing other debts against your home.
The Telegraph Media Group Equity Release Service is provided by Royal London Equity Release Advisers. Royal London Equity Release Advisers is a trading style of Responsible Life Limited which is registered in England & Wales. Company No. 7162252. Registered Office: Princess Court, 23 Princess Street, Plymouth, PL1 2EX. Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (https://register.fca.org.uk/) under reference 610205.
Responsible Life Limited is a wholly owned subsidiary of the Royal London Group who may benefit if you choose to take regulated mortgage advice. Being a wholly owned subsidiary of the Royal London Group does not alter Responsible Life Limited’s regulatory responsibilities.
Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,890. Their adviser will talk through the setting up costs before you choose to proceed.
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