The research reveals that:
- 42% of first time buyers are now over 35 years old (2,554,461 people)
- 21% are over 45 years old (1,277,230 people)
- Over 10 million people (10,614,717) aged 35 to 65 years of age have started a new mortgage term at least once when they moved home
- One in four - over 12.5 million people - are set to have a mortgage at retirement
Pru predicts the luxury of owning your home outright before retirement is going to be a thing of the past. "The reality is that pensioners are still going to be paying off the mortgage as they hit retirement - a time when their average income drops by almost £4,200 and other financial pressures come into play" says Ali Crossley, Director for Prudential's Equity Release plans.
But people's attitudes are catching up with reality and they are less concerned about owning their home outright. "Only half (53%) of homeowners nowadays feel it's very important to own their home outright, and the most realistic generation are those in the 55-64 age bracket who are facing retirement issues" she adds.
The Pru research shows property is increasingly viewed as an asset to be leveraged throughout life, also evident in the recent Bank of England figures which show an explosion in mortgage equity release (up 20% in the last quarter of 2003).
With almost half of homeowners (46%) actively using or planning to use their home for retirement funding, Prudential predicts that releasing equity in retirement will become a natural part of retirement planning as people need to unlock cash from their home - and are more willing to do so.
Ali Crossley added: "Having worked for 35 or 40 years, retirement should not be a disappointment. However, we know that people underestimate how long they are going to live and greatly underestimate how much money they will need to save for retirement. People reaching retirement age can now expect to live another 20 years and unless they start to plan and save more the tougher the financial pressures will become in retirement.
"Equity release has the potential to provide improved lifestyle for those struggling financially in retirement and everyone can take action by seeking independent financial advice or by looking at other sources of information such as The Plan from the Pru."
For further information on the Prudential Home Equity Release Plan, consumers should call 0845 600 1564 for more information, or visit www.pru.co.uk
