Over 55s’ homes are worth an average £290k
People aged 55 and over who own their home have property worth an average £290,659, according to SunLife.
Most have had their homes for more than 20 years, with the average property bought in 1994. Back then, the average home was worth £51,633 which means an increase in value of a whopping £239,026.
The vast majority – 82% – own their home outright, while those who do have an outstanding mortgage only have an average £55,044 left to pay – less than a fifth of the total value.
This equity could help many of them to lead a comfortable retirement, according to the financial firm.
What do you need to retire?
Over 55s say they need £114,436 for a comfortable retirement, according to SunLife.
The over 50s specialist asked more than 1,000 people in their 50s, 60s, 70s and 80s, how much money they think they would need – on top of any income they already have – to “feel comfortable for the rest of their lives.”
Understandably, those aged 55-59 said they would need more – £180,741 on average, those in their 60s said £101,811 and those aged 70 and over thought a lump sum of £93,801 would be enough for a comfortable retirement.
Simon Stanney, equity release service director at SunLife, said: “This is a generation that are generally property rich and cash poor due to healthy increase in the value of their homes, but inflation eating away at pension pots and increased living costs.
“62% of those surveyed said they categorically did not want to downsize, which means the solution for the majority could be to unlock some of the value in their homes via equity release.”