The group said total residential property wealth held by the over-60s is estimated at £2.92trn, around three times more than the total market value of all DC pension assets in the UK at £950bn.
Will Hale (pictured), CEO of Key Equity Release, said: “The colossal switch towards DC in the UK pension landscape dramatically demonstrates why property wealth is increasingly important in retirement planning.
“Over-60s approaching retirement with modest DC pension pots need to look at all their assets and consider all options for funding their wants and needs in retirement. Property wealth has to be part of the mix.
“With property wealth typically representing more than 40% of household wealth and the value of residential property wealth held by the over-60s massively outstripping the market value of all DC pension assets, it is important that advisers and clients consider all their options.”
He called on advisers to refer clients to trusted specialists in situations where their own qualifications or scope of advice limit their options “in order to ensure better outcomes for many more customers in later life”.
EPC planning: act now or risk the rush later
Sponsored by BM Solutions
The Key Equity Release figures show that around six out of 10 (59%) of over-60s currently have some DC pension assets, with the median amount held estimated at £102,000 compared with average house prices of around £270,000.
However, around a quarter of over-60s have DC pension funds of less than £25,000.
Equity release currently declining
Despite the discrepancy between property and pension wealth in older people, equity release is now declining. According to figures from the Equity Release Council, released earlier this month, UK equity release lending dropped 9% quarter-on-quarter to £574m in Q1 2026, marking a 14% year-on-year decline.
David Burrowes, chair of the Equity Release Council, said macroeconomic factors were partly to blame.
He said: “It’s disappointing to see activity fall in Q1, particularly given the significant uplift in enquiries. However, like other parts of the mortgage market, it’s clear the uncertainty dominating the UK and global economies, driven by the conflict in Iran, is contributing to higher interest rates and borrowing costs – while tighter loan-to-value availability is further slowing consumer decision-making, delaying completions.
“What we’re seeing is not a lack of demand – enquiries are up – but a delay in cases coming through. Advisers are reporting strong levels of interest, but customers are taking more time and, in some cases, pausing decisions altogether.
“It could well be that we are set for an uplift as conditions stabilise and delayed cases begin to complete. Over the longer term, the underlying drivers of demand remain in place, and housing wealth continue to play an important role in supporting financial resilience later in life.”
Other experts in the field, such as Dave Harris at More2Life, said the products are still underused.
“We know more people are borrowing into later life. We know pension income is under pressure. We know housing wealth is often the largest asset many over-55s hold. Against that backdrop, it is hard to argue that lifetime mortgages should remain a small corner of the market,” he recently told Mortgage Solutions.
