41% of homeowners approaching retirement are now banking on their property wealth as part of their planning as pension freedoms drive a change in attitudes, according to new data from equity release lender More 2 Life.
The research among homeowners in the 55 to 64-year-old age group shows strong support for using property wealth in funding their retirement and it is also points to potentially stronger demand among younger age groups. 51% of younger homeowners in the 45-54-year-old age group regard their property wealth as part of their retirement planning.
More 2 Life argues that the research highlights a growing confidence in the use of property wealth as part of retirement planning. Although 17% of over-45s homeowners would not consider accessing their property wealth to boost retirement planning, there is strong potential demand for more retirement lending solutions, with nearly 60% of those aged 65+ calling for more specialised borrowing products designed for retired people. The retirement lender believes more people could have their retirement finances transformed if equity release solutions were more widely promoted.
Dave Harris, managing director of 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.”
The research also found that as many as 27% of homeowners aged 65+ would opt to access tax free equity in their homes before accessing retirement savings that are liable to income tax.