You are here: Home - Retirement - Retiring now - News -

Over-55s have more property wealth than GDP of Italy

Written by: Christina Hoghton
Over-55s in England have more wealth locked-away in their homes than the entire annual GDP of Italy, according to research commissioned by Age Partnership.

The retirement income specialist found that homeowners in England aged 55 and over currently own £1.5trn worth of property – £0.1trn more than Italy’s annual GDP.

With 6.3 million over-55s owning their home outright, this makes English over-55s some of the most property rich people in the world.

More money, more equity

And the level of locked-up housing wealth is predicted to grow massively. The research shows the long-term growth pattern of over-55s property wealth, with the forecasted figure for 20 years’ time standing at £2.9trn in England alone (based on a modest annual house price increase of 2% and the number of over-55s in England increasing by 5.3m between 2016 and 2036).

Simon Chalk, equity release expert at Age Partnership, said: “A small fortune is locked away in the houses owned by the older generation in England. The total property wealth of over-55s is already in the trillions – it even tops the GDP of Italy. This stored wealth cannot be ignored: housing must become a primary part of retirement financial planning and we need to open up more channels to help over-55s benefit from it.

“Over the next 20 years housing wealth will become increasingly important, as the baby-boomers generation reach retirement en-masse. Pensions will continue to cause a headache as the population ages. Adding property wealth to the mix could help alleviate that pressure. Equity release is already taking a starring role as it provides an alternative to downsizing but still enables over-55s to release cash from their homes.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Why NS&I may need to trim interest rates for millions of savers

Savers continued to plough money into National Savings and Investment (NS&I) in April, though at a slower...
Why NS&I may need to trim interest rates for millions of savers

NS&I makes it easier to top up Premium Bonds

NS&I has started rolling out an alternative way to make payment, which should make it easier and more secu...
NS&I makes it easier to top up Premium Bonds

How to get 9% interest without tying up your savings for years

You don't have to lock your money away for years to get above-average returns on your savings.
How to get 9% interest without tying up your savings for years

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week