The report by Friends Provident found that the desire to stay in one’s own home continues to increase as people get older, while the intention to downsize declines.
The report, Visions of Britain 2020, found 77% of people aged over 65 want to remain in their current home until the end of their lives, while 42% of people aged 34 to 44 want to stay in their own house once they retire.
However, Friends Provident highlighted that, with just 32% having a pension, equity release will become much more common in the future as the home becomes a vital asset in retirement.
It said that equity release schemes will have to be “rehabilitated” in the public consciousness to help people realise the value of what is often their most substantial asset.
Indeed, the Pensions Policy Institute has estimated that the value of housing wealth owned by people over the state pension age could increase by 40.5% from £907bn in 2009 to £1.274trn in 2030.
Trevor Matthews, chief executive of Friends Provident Holdings (UK), said: “There is no doubt people still see their house as an investment, however, it is important to make the distinction between people appreciating the value of their house and actually planning to use it as an asset.”
He said: “With increased longevity and the decline of final salary schemes, it is clear that in the future many people will need to consider how they can realise some of the value from their house.
“As a result, we believe that equity release schemes will become significantly more commonplace in the future.”
