The gap between becoming mortgage-free and retirement is declining, according to new research from Santander Savings.

It found that the average ‘savings window’ – the period between paying off a mortgage and retiring during which people have a golden opportunity to add to their savings – is shrinking fast. People who first took out a mortgage in the early 1960s had an average savings window of 21 years, whereas those who took out their first mortgage between 2000 and 2010 will have, on average, a window of just 10 years to save their cash.

Since the early 1960s the UK has seen a steady decline in the average savings window for new mortgage customers in each decade, raising concerns that those who took out a mortgage in recent years – and those who have yet to do so – may struggle to bank enough cash for a comfortable retirement.

With those over the age of 55 only saving an average of £88 each month, the pressure to continue working later in life is mounting for many.

Reza Attar-Zadeh, director of savings and investments at Santander, said: “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