You are here: Home - Retirement - Retirement planning - News -

Two in five plan to use property wealth in retirement

Written by:
More than two out of five homeowners are banking on property wealth to see them through retirement, research has revealed.

The report by equity release lender more 2 life indicates that 41 per cent of homeowners aged 55-64 support using property wealth to fund their retirement. This figure rises among younger age groups, with 51 per cent of homeowners aged 45-54 regarding their property wealth as part of their retirement planning.

The firm said the findings suggest a growing confidence in the use of property wealth in retirement planning. Although 17 per cent of over-45s would not consider accessing their property wealth to boost retirement planning, nearly 60 per cent of over-65s favour more specialised borrowing products designed for retired people.

The figures also indicate a growing awareness of the tax advantages associated with equity release – 27 per cent of homeowners aged 65 and over would opt to access tax free equity in their homes before accessing retirement savings, which are liable to income tax.

“Pension freedoms have put property wealth at the heart of retirement planning by increasing flexibility over how savers can access their cash,” said Dave Harris, managing director or more 2 life.

“There is a very clear and growing demand to access home property wealth across the UK. There are lots of people in the UK, in middle England, whose retirement will be transformed and their tax bills potentially reduced if they looked at their pension and property assets together.

“The pension reforms make a holistic approach to retirement planning more important than ever before and those approaching, or at, retirement should factor in property wealth when planning for the future.”

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.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • RT @STEPSociety: UK Ministry of Justice abandons plan to increase EW probate fees, described by STEP’s Emily Deane TEP as a stealth tax on…
  • UK Ministry of Justice abandons plan to increase EW probate fees, described by STEP’s Emily Deane TEP as a stealth…
  • RT @jilly284: @YourMoneyUK 200k #ukmortgageprisoners have been put in financial misery for over a decade through no fault of their own. Hom…

Read previous post:
Sector spotlight: the outlook for investing in banks

Investors deserted UK banks following the financial crisis but with share prices recovering, dividend payments resuming, and institutions seemingly in...