Older homeowners in England are currently sitting on £1.2trn worth of property wealth, according to the firm. By 2035 this is forecast to increase 105% if property prices in the UK rise by a modest annual average of 2%.
Age Partnership claims that these findings highlight a major long-term shift towards the importance of housing wealth in retirement financial planning, particularly in light of the fact that individuals are expected to live for longer following retirement.
There are currently 15.9 million people in England aged 55 or older which is expected to rise by over a third (33.8%) to 21.3 million by 2035, as people increasingly live longer. This compares to a much slower growth of 10.8% for the population of England as a whole.
Simon Chalk, equity release expert at Age Partnership, said: “We are witnessing a radical long-term shift towards people reaching retirement age with a hugely significant nest egg in the form of property wealth.
“Over-55s who want to tap into this have two options. Downsizing to a smaller or cheaper property can free up their wealth. But many don’t want to move or can’t find suitable housing to downsize to. For people who can’t or won’t downsize, equity release can be a powerful tool to tap into a share of their property wealth – large or small.”
