Two in five plan to use property wealth in retirement
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.”