A survey conducted on behalf of Legal & General Home Finance found that 22% of current workers plan to use the value of their home to pay for their retirement.
Moreover, of the 4,000 adults surveyed at the end of this year, the survey showed that 35% of all non-retirees own a house but have less than £ 10,000 in their pension fund and 22% do not. have no pension savings.
Legal and General calculates that the average homeowner in England and Wales, after seeing a 24% increase in median house prices since 2016, could step up to almost £ 73,000 through a release of own funds.
Findings show that 10% of workers expect to downsize when they retire, 9% expect to sell, while only 6% currently expect to use a life mortgage when they are older .
Claire Singleton, Managing Director of Legal & General Home Finance, comments: “The significant increase in real estate prices in recent years has likely changed the expectations of many people about the role that real estate wealth will play in sustaining real estate over time. their retirement.
“We predict that using your home to fund your retirement will become more common in the future, whether that’s downsizing to free up funds or freeing up money locked in your home through products like loans. lifetime mortgages.
“It’s never too early to start thinking about how you plan to finance your retirement and to seek the right advice on getting your affairs in order, and for many homeowners, their property could be the key to get the lifestyle they want.
“Our results also show that a large number of people who are currently retired may have limited income and could benefit from the likely increase in the value of their home. It is important that we address the discomfort some people still feel about using money from their homes to help them achieve better financial results in retirement.