The number of homeowners who are planning to fund their retirement by releasing equity from their properties has more than doubled over the last year.
According to LV=, 52% of working over-50s plan to use their home as their pension by releasing equity from it, up from only 28% last year.
Encouragingly, the research also showed that 75% of over-50s own their home outright, with their properties valued at an average £258,000 – more than £15,000 higher than the national average.
Interestingly, over-50s have spent an average of £30,000 each creating their perfect home, which perhaps explains why two in five (or 38%) say they want to stay in their current home for the rest of their lives. This figure rises to one in two (47%) of all retirees.
"With people spending longer in retirement one of the challenges that many need to overcome is how to fund it and how to meet the financial demands they may face in later life, such as the cost of long-term care," said Vanessa Owen, head of annuities and equity release at LV=.
"There are numerous ways that retirees can access the capital tied up in their home, including deciding to downsize or take out an equity release plan. For those considering unlocking the money in their homes it's important to seek professional advice and explore all of the options available in order to find the best solution for them."
Read our guide on equity release to find out more
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