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34% view their home as their pension

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  • 14/12/2011
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34% view their home as their pension
More than one in three people aged over 45 regard their house as part of their pension pot, promising a strong future for equity release, according to More 2 Life.

Its research of more than 1,000 people aged over 45 showed that, of people aged between 45 and 54-years-old, those who consider their home as part of their pension rose to 48%, compared to 24% of over-65s.

Of those seeking to put their housing equity to use in retirement, there was an even split between those who own their home outright and those with a mortgage.

More 2 Life said that this reliance on housing equity to help fund retirement will create a strong equity release market and added that it has seen increasing interest in the sector from funders, including annuity providers, life companies, building societies and banks, following recent growth.

Jon King, managing director of More 2 Life, said: “Rising longevity means people will be retired for longer and will need income to last longer if they want a comfortable retirement.

“Retirement savers are literally sitting on wealth with average house prices at £160,000 and that could be used to help supplement retirement income. It makes sense to include property equity in retirement income planning.”

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