One in three will help fund retirement with property wealth
Nearly one in three people set to retire this year plan to use their property wealth to help boost their retirement income, according to research from Key.
The over-55s specialist adviser found that those expecting to finish full-time work in 2020 own property worth more than £142.5 billion in total, with an average of £388,900 each.
Nearly half (46%) will look downsize to a smaller property while 23% will consider equity release or remortgaging.
People expecting to retire in London are the most likely to use their property wealth in retirement and have the most wealth on average at £661,900 each followed by homeowners in the South East.
Homeowners in East Anglia are the least likely to use property wealth to boost retirement income – around 17% will consider it even though they have average property wealth of £426,400.
The study found that two out of five (40%) property owners are happy with their expected retirement income and do not need to consider their property wealth.
Will Hale, CEO at Key, said: “Many will not need to use their home as part of retirement planning, but it is worrying if people are not taking property wealth into consideration due to a lack of awareness of the options available to them or as a result of myths or misconceptions about products.
“Our research shows many are worried about borrowing money or moving to a new house while others are concerned about making mistakes. These customers could benefit from information and advice when assessing their options for using property wealth.”