One third (33 per cent) of people aged 55+, owning properties valued at £300,000 and above, are planning to support themselves with income generated from their homes, new research from Audley Retirement reveals.
This offers a potentially huge boost for the UK economy, as more people aged 65-74 have their own homes in the UK than any other age group and people above the age of 55 hold an estimated £1.1 trillion in unmortgaged equity.
The majority of wealthy homeowners over the age of 55 are not worried about being able to fund their retirement.
Just a tiny proportion (2 per cent) of the 1,280 people polled by Audley last September said they were not sure about financial support during retirement.
More than half (57 per cent) of the survey respondents said a private pension would be their main source of income and one in five, or 19 per cent, felt they have sufficient savings in other forms to act as their main income.
“The new research shows yet again that this is a financially savvy and well-prepared demographic, who are well prepared to get the most out of their retirement. It’s particularly interesting to see that 33% are planning on using their homes to help fund their retirement. Unlocking equity in a family home by downsizing has a huge number of benefits, both in the avoidance of tax on a lump sum income, and in the positive effects across the whole property market. We must empower older generations to continue contributing to the economy and society, by ensuring they understand the full range of options available to them,” Nick Sanderson, chief executive of Audley, said.
