Over two-fifths (41 per cent) of homeowners would use their property wealth to support themselves during retirement, new research from more 2 life shows.
The equity release lender polled 1,060 homeowners aged above 45 and found that the inclusion of property wealth in the retirement planning is strongly supported by older and younger respondents. More than half (51 per cent) of homeowners aged 45-54 said they regard their property as part of their pension.
Almost 60 per cent of those aged 65+ require more borrowing products especially designed for retirees.
The findings suggest that people feel more confident to use their homes to fund part of their retirement, according to more 2 life. The lender believes equity release could help a lot of homeowners boost their pension income.
Customers also seem to be getting more aware of the advantages offered by equity release products. More than a quarter (27 per cent) of homeowners aged 65+ said they would opt to access tax free equity in their homes before accessing retirement savings that are liable to income tax.
Dave Harris, managing director or more 2 life, said: “Pension freedoms have put property wealth at the heart of retirement planning by increasing flexibility over how savers can access their cash.
“There is a very clear and growing demand to access home property wealth across the UK. There are lots of people in the UK, in middle England, whose retirement will be transformed and their tax bills potentially reduced if they looked at their pension and property assets together.
“The pension reforms make a holistic approach to retirement planning more important than ever before and those approaching, or at, retirement should factor in property wealth when planning for the future.”
