Gap between paying off mortgage and retiring `is shrinking`

The amount of time between becoming mortgage-free and retiring is shrinking for the average British homeowner, research by Santander suggests.

The average `savings window` - the time after paying off a mortgage, in which homeowners have a good opportunity to save more money for retirement - has shrunk from an average of 21 years in the early 1960s to just 10 years for those who took out their first mortgage between 2000 and 2010.

Reza Attar-Zadeh, Director of Savings and Investments at Santander, commented: "For many people the period when they are still in employment but mortgage-free represents a golden opportunity to get some cash in the bank in preparation for retirement. This window has more than halved since the 1960s and the opportunity to save is getting smaller and smaller. Our advice to people is to start saving as early as possible, even if they only put away small amounts every week or month."

An expert at debt management company Gregory Pennington said: "Savings are very important for ensuring financial security in later life, so the more time people spend saving for the future the better.

"A good savings pot can also provide excellent short-term protection against unexpected costs that could otherwise lead to debt."