New research suggests that the majority of wealthy over 55s – those with houses valued at £300,000 or more – have firm plans in place to fund their retirement.
The research from Audley Retirement found that 57% of those surveyed said a private pension would be their main source of income and 19% felt they have sufficient savings in other forms to act as their main income. Only 2% were not sure how they were going to fund their future.
Audley also found that this demographic are savvy to the options available to them when unlocking additional funds. 33% are planning to use equity from their home to help fund their future. The retirement firm said this offers a potentially huge boost for the UK economy, as more people aged 65-74 own their own homes in the UK than any other age group and over 55s are sitting on £1.1 trillion of unmortgaged equity.
Nick Sanderson, CEO of Audley, said: “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.”