Property is part of pension for half of over-45s
Almost half (46%) of over-45s have included their homes in their retirement plan, according to research from Aviva.
However a third expect to be paying into a mortgage past retirement. And one in 10 (8%) said they expect to borrow further in retirement, so that they can cover day-to-day costs.
Older homeowners have more options than ever to fund retirement, but also new responsibilities. For example, a third (31%) have helped their children get the finances they need to buy their first home.
One in five downsize their property to release equity tied up in their home, so they can have financial flexibility in retirement and help their children financially.
Most homeowners are aware of the need to prepare their home for retirement, with three-quarters of older homeowners having made home improvements in the last five years for that very reason.
Clive Bolton, managing director, Retirement Solutions, at Aviva Life UK, said that property now plays a crucial role in retirement funding. He explained: “With multiple needs to address – including but not limited to retirement income, funding care and helping children get on the property ladder – housing wealth alone is unlikely to provide a definite answer to every need in later life while also providing a place to call home. Nevertheless, property looks like playing a considerable role in a ‘blended’ approach to retirement funding that is already starting to emerge.”