Growing housing equity to boost retiree incomes
Increasing property wealth could bolster pensioner incomes during an unfavourable economic period.With falling interest rates and growing inflation, retiree pension pots are suffering. Many are being forced to look for other ways to boost their savings. Data has suggested, however, that the income of pensioners could be supplemented with the help of equity release.
At £2.6 trillion, the ONS Wealth and Assets Survey indicated that homeowner equity is growing – with homeowners over 55 owning £1.8 trillion of this. The research also revealed that of the households that own the property, the median wealth reaches £153,000.
Chairman of the Equity Release Council, Nigel Waterson, highlights the importance of housing wealth and the impact it could have for retirees under financial pressure.
He states that wealth unlocked through property could have significant benefits, especially if it’s been built up during the course of a working life. On the assumption that house prices grow by 3% annually, any retirement income would be substantially bolstered by equity release.
Nigel draws attention to the significance of housing wealth in later life, as well as the importance of policymakers and the industry as a whole to raise awareness around its benefits.
A joint project between several regional law firms, Equishield provide professional legal advice for Equity Release Mortgages across England and Wales. More information can be found on their website.