Pensioner wealth rises by £33m
Such has been the nature of the housing boom, on average over-65s have earned nearly £1,200 per month just from their homes.
Dean Mirfin, group director at Key Retirement, said: “Retired homeowners have huge assets in their houses with total property wealth hitting an all-time high of £861bn.
“In the past five years they’ve made an average of more than £17,000 each from their homes, which is an impressive return with interest rates at historic lows.
“Even if or when the property market cools they will still have a major asset. With equity release rates at their lowest in 10 years and the long-term trend for rates continuing to go down, we expect the market to continue to expand.”
Retired London homeowners were the biggest winners – gaining over £20,000 in property wealth in the last six months, while homeowners in the South East and East Anglia are more than £14,000 and £13,000 better off.
Over-65 homeowners are taking out more wealth from their homes in the form of equity release – as £1.38bn was released last year with the average customer taking out £64,800.
Only retired homeowners in the North East saw a fall in housing wealth with average losses of £581 in the six months.
Mirfin added: “That’s why retired homeowners, and those approaching retirement, should think carefully about making use of their property wealth in retirement planning.
“New pension rules coming into effect next month make a holistic approach to retirement planning even more important and the need for independent advice crucial.”