Retired homeowners across the country have earned around £900 on average in each of the past three months, new analysis from pension finance specialist Key Retirement shows.
The total property wealth of retired people over 65 increased by more than £12.5 billion over the last three months as house prices continue to climb.
In the five years since Key started monitoring the housing wealth of those aged 65+, in January 2010, total pensioner property wealth has increased by 12 per cent or £93.85 billion which equates to £20,000 on average for every homeowner.
Retired homeowners in London were the biggest winners gaining an average of around £16,260 in each of the past three months. Homeowners in Scotland rank second with average earnings of £8,650 per month, followed by pensioners in Yorkshire & Humberside whose average monthly gain was £4,063.
Out of the 11 UK regions monitored by Key Retirement, eight recorded gains for the last three months.
However retired homeowners in Wales saw a fall in housing wealth with average losses of £2,230 in the three months while the North West and West Midlands also saw house price falls.
Key’s figures show nearly a fifth of all pensioner property equity is owned by over-65s in London with total wealth of £173.683 billion. Nearly two-thirds of pensioner property wealth is concentrated in London, the South East, the South West and East Anglia.
Dean Mirfin, technical director at Key Retirement, said:
“Retired homeowners have huge assets in their houses with total property wealth hitting another all-time high of £873 billion highlighting the growing importance of housing for retirement planning.
“No matter what happens in the property market homeowners will always have a major asset which should be considered as part of retirement planning. Innovation in the equity release market and the launch of pension freedoms are opening up more ways for homeowners to use their property wealth.
“Retired homeowners, and those approaching retirement, should take advice on how their property wealth can generate additional capital and/or income. Advisers and lenders need to focus on a holistic approach to retirement planning which ensures that property wealth is considered alongside pension savings and other investments.”
