Growing expectation in property wealth funding retirement

42% of those aged 45-plus paying off mortgages regard their property equity as part of their retirement income plan compared with 25% of those who have paid off their mortgage, according to research commissioned by equity release lender More 2 Life.

More 2 Life believes the study points to a growing acceptance that wealth built up in property can be used to supplement retirement income pointing to a potentially bright future for equity release.

The younger homeowners are the more likely they are to regard their property as part of their retirement income planning, More 2 Life’s research shows. Around 45% of those aged 45 to 54 believe their property is part of their retirement planning compared with 30% of those aged 55 to 64 and 22% among those aged 65+.

The research was conducted online by ConsumerIntelligence.com between 7-12 December 2011 among 1,076 adults aged 45+ who either own their home outright or have a mortgage.

Jon King, managing director of More 2 Life, said: “There is a shift in attitudes to with those who have mortgages realising that their property wealth should play a major role in retirement income.