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Pensioners sat on £900bn property wealth

by: Adam Williams
  • 17/06/2015
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Homeowners aged over 65 have accumulated property wealth of almost £900bn, market statistics have shown.

Figures from Key Retirement suggest over-65s have wealth of £873.77bn, a figure than is growing quickly.

Since the start of 2010 total pensioner wealth has increased by 12%, equivalent to on average of £20,000 for every homeowner.

On average each of these homeowners are £2,680 better off than three months ago, with total wealth rising £12.5bn.
Retired homeowners in London have added an average of £16,260 to their wealth in the last quarter, with large gains also found in Scotland (£8,650) and Yorkshire and Humberside (£4,063).

However, pensioners in Wales have seen an average fall in housing wealth of £2,230.

Dean Mirfin, technical director at Key Retirement, said: “Retired homeowners have huge assets in their houses with total property wealth hitting another all-time high of £873 billion highlighting the growing importance of housing for retirement planning.

“No matter what happens in the property market homeowners will always have a major asset which should be considered as part of retirement planning. Innovation in the equity release market and the launch of pension freedoms are opening up more ways for homeowners to use their property wealth.

“Retired homeowners, and those approaching retirement, should take advice on how their property wealth can generate additional capital and/or income. Advisers and lenders need to focus on a holistic approach to retirement planning which ensures that property wealth is considered alongside pension savings and other investments.”

“This is a reform of equal magnitude to the Right to Buy council house sales revolution of the 1980s; in the same way that Margaret Thatcher introduced millions of people to home ownership, George Osborne is now introducing millions of people to pension ownership.”

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