Property wealth among pensioners has grown by nearly £17.5bn in the past three months highlighting its importance in retirement planning, Dean Mirfin has claimed.
“Property prices rise and fall, but over-65 homeowners control more than £891bn in assets, which can make a major contribution to enhancing retirement lifestyles,” the technical director at national advisory firm Key Retirement said.
Key Retirement’s Pensioner Property Index has shown that over-65 homeowners have gained an average of £3,725 each from their houses in the past three months.
In the five years since Key started monitoring the housing wealth of the over-65s, total pensioner property wealth has increased by 14 per cent, or £111bn. This equated to £23,700 on average for every homeowner.
Daren O’Brien, financial adviser at London-based Aurora Financial Solutions, said: “There has always been the opportunity to invest in property funds within a pension, and we see pension funds being used more in this way. This is much more tax-efficient than cashing in your pension to put into direct property. Also, with the buy-to-let market expanding, we can see this also being popular.”