Over-65s own property wealth of £2.944 trillion outright which could be put to use supporting their retirement planning and give a boost to the property market, Key Later Life Finance says.
Its data shows more than 10 million over-65s own their properties outright without a mortgage and can potentially put the wealth to work.
Over-65s in the South East of England own the most property wealth, with more than £582 billion invested in homes, followed by over-65s in London holding more than £520.767 billion in their homes.
More than two-fifths (37%) of the property wealth held by over-65s is concentrated in the South East and London but over-65s throughout Great Britain also hold considerable wealth.
Government data shows average pensioner incomes in retirement are currently £20,120, rising to £29,170 for couples, and could be substantially enhanced by making use of unencumbered equity sitting with these older homeowners.
This property wealth can also be put to work supporting children and grandchildren with deposits to get on the property ladder, with average first-time buyer deposits now around £61,090.
Will Hale, CEO of Key Advice, said: “Over-65s have considerable wealth tied up in their homes and are literally sitting on money that could give them a more comfortable or fulfilling retirement. Alternatively, this wealth could be used to provide a living inheritance and offer family members cash at a point in their lives when they need it most, for example when children or grandchildren are looking to get on the housing ladder.
Lifetime mortgages enable money to be drawn down tax free which can be a sensible way for over-65s to fund retirement needs or to make gifts in a tax efficient way. However, everyone’s circumstances are different and it is important that these products, which do have some downside risks, are accompanied by specialist advice.”
