Over-65s earn £6,000 a year from their homes
Over-65s saw their property wealth grow by more than £6,000 each on average in the past year alone, according to Key.
That’s despite the housing market going into lockdown amid ongoing economic and political uncertainty, said the equity release adviser.
Total property wealth owned by over-65s who have paid off mortgages is now valued at £1.124 trillion and has increased by £28.299 billion in the past year alone.
That’s the equivalent of a £6,032 gain for homeowners.
Over the long-term the gains for older homeowners have been even more impressive. Since Key started analysing the mortgage-free property wealth of the over-65s in 2010, homeowners have seen growth of 45% – equivalent to £73,400 per household in the past decade.
The biggest gains in the past year have, unsurprisingly, come in London where over-65s homeowners are nearly £26,000 better off over the year while pensioners in the South West have gained £9,600 and over-65s in the South East are more than £7,600 ahead.
The South East and London account for more than a third of all property wealth held by the over-65s while the South West and East Anglia account for more than a quarter.
Will Hale, CEO at Key, said: “Millions of over-65s who have repaid their mortgages are sitting on considerable unencumbered property wealth but may find that their retirement funds are not quite as healthy as they hoped.
“It is vital to get specialist advice and consider all assets when it comes to planning your finances through retirement as making smart choices can significantly improve your standard of living throughout later life.
“The equity release market has seen a slowdown as people take their time to decide how best to use their wealth in retirement but the number of customers looking to explore their options remains high demonstrating the ever-increasing need for expert advice in this area.”