A new report has revealed that parents who have children later in life are saddled with paying off their mortgage for much longer.
The research from Saga Life Insurance, discovered that those who don’t become a parent until they are in their 40s take until they are nearly 70 to own their home outright.
The study was designed to look at the financial implications of becoming a parent later than the norm and the additional pressure placed upon household budgets.
Researchers found that those who had children later, were not able to pay off their mortgage until age 69, on average, whereas parents who had children earlier on, had paid off what they owed by age 66.
In the general population aged over 50, 17% still had a mortgage to repay, but this figure rose to 23% amongst those who had a child when they were in their 40s. For the over-50s that still held mortgages, the typical balance was £62,262, rising to £76,719 amongst the group who had children later in life.
And it wasn’t just mortgages that were found to be higher, the number and average value of personal loans was also greater, 17% compared to 13%, with an average balance of £15,274, rather than just £11,288.
However, the study also discovered that despite the extra financial burden, there is a continuing trend amongst parents to have children later in life, either their first-born or an extension of their existing family. The average age to add the final member of the family was found to be 31, but one in five parents said they were aged 35-40 and one in 20 said they were over 40.
The study was based upon interviews with 9229 adults over the age of 50 during June 2012.