More than six million people who expect to have housing costs in retirement do not know how they will afford them, according to research from Royal London.

The study from the UK's largest mutual life, pensions and investment company found that 18.7 million UK adults, or 34%, either expect to pay rent or a mortgage in retirement or are already doing so, with 39% of the 16 million people expecting future housing costs unsure how they will fund them.

Renters face the greatest risk, with 61% expecting housing costs in retirement compared with 37% of mortgage borrowers. Nearly half of renters expect to continue paying rent for more than 10 years after retiring, while 7% of mortgage holders expect their mortgage to last that long.

Younger adults are also more exposed, with 44% of 18 to 34-year-olds expecting housing costs in retirement, compared with 24% of those aged 50 to 69.

Those expecting to have housing costs also had significantly lower average pension savings, at £34,948 compared with £120,682 for those expecting to be mortgage- and rent-free.

Royal London consumer finance specialist Sarah Pennells said: "Whether it's renting for longer, taking out larger mortgages or stretching repayments over decades, more people are approaching retirement still facing significant housing costs.

"Housing costs can make a huge difference to how far retirement income will stretch. Understanding what your housing costs could look like in later life can help you develop a more realistic picture of the income you'll need in retirement."

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