x
By using this website, you agree to our use of cookies to enhance your experience.

TODAY'S OTHER NEWS

Property wealth of over-55s to hit £2.5 trillion

The total property wealth of over-55s in England will double to almost £2.5 trillion by 2035, according to new research by Age Partnership.

It said the trend is a long-term shift that will make housing wealth even more important in retirement income planning.

Equity release specialists Age Partnership calculates that over-55s in England are currently sitting on £1.2 trillion worth of property wealth.

This is forecast to rise 105% to £2.5 trillion in the next 20 years, assuming property prices in the UK rise by a modest annual average of 2%. 

Even if house prices remain completely flat, the housing wealth of over 55s is forecast to increase by 38% to £1.7 trillion by 2035.

The 15.9m people in England currently aged 55 or older is expected to rise by over a third to 21.3m by 2035 as people live for longer.

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. 

“Many baby boomers currently reaching retirement age are fortunate enough to have amassed both property wealth and a sizeable pension.

“As the number of people retiring with generous defined benefit pensions declines over the long-term, housing wealth could become even more important in retirement planning in twenty years’ time than it is today."

Chalk said that over over-55s who want to tap into their housing wealth to fund their retirement lifestyle have two options, either to downsize or sign up to equity release.

“Equity release isn’t for everyone, but the explosion we are seeing in the housing wealth of the over 55s means that it will be an option that is available to more people than ever before.”

icon

Please login to comment

Zero Deposit Zero Deposit Zero Deposit
sign up