Retired homeowners saw their property wealth grow by a whopping £13.7bn over the past three months with theaverage pensioner earning more than £1,000 a month, analysis from over-55s financial specialist Key Retirement has shown.
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.
Dean Mirfin, technical diretor 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.
“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.”
In the six years since Key started monitoring the housing wealth of the over-65s, in January 2010, total pensioner property wealth has increased by around 20% or £152bn which is worth around £37,160 on average for every homeowner.
Its Pensioner Property Index shows over-65 homeowners now own property wealth of £917.1bn outright with pensioners across almost all of the country benefiting in the past three months.
The continuing strong growth in house prices is highlighting the importance of property wealth for retirement planning, Key believes. That is underlined by growth in the equity release market with customers releasing property wealth taking around £72,000 on average.
Retired homeowners in London were the biggest winners gaining an average of around £15,061 each in the past three months, while homeowners in the South East of England are more than £4,537 better off and pensioners in East Anglia are £6,448 better off.
