Property  

Pension property wealth nears £920bn

Pension property wealth nears £920bn

The average pensioner’s property wealth is increasing by more than £1,000 a month, analysis from Key Retirement showed.

Pensioners who own their homes outright have earned an average of £3,106 tax-free each from their houses in the past three months taking their property wealth to a new record high, according to Key Retirement.

Dean Mirfin, technical director at Key Retirement, said: “Retired homeowners have huge assets in their homes which can make a massive contribution to their standard of living demonstrating how important property investment is.

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“For many the major barometer of their financial well-being is the value of their home. The increase in values experienced since our research began in 2010 show the impact that property values can have on pensioner capital and income in retirement.

“The cash that can be generated from property easily outstrips the average amount held in private pensions highlighting how important it is for homeowners to seek independent expert advice on how to use their housing wealth.”

Frank Cochran, independent financial adviser for FSC Investments, said: “This is definitely good news as wealth shows a recovery in the economy, with 20 per cent being a good rate of growth.”