x
By using this website, you agree to our use of cookies to enhance your experience.
STAY CONNECTED!
    
newsletter-button

TODAY'S OTHER NEWS

Property wealth of the over-65s soars

Research conducted by financial consultancy Key Retirement has revealed that UK pensioners have earned average returns of £3,725 over the past three months through property investment.

In fact, property wealth for the over-65s is at its highest ever level – since 2010, when stats were first recorded, overall pensioner property wealth has risen by 14%. Taken together, this amounts to £111billion and £23,700 on average for every homeowner.

Furthermore, Key Retirement's findings also showed that over-65 homeowners now own residential assets worth a total of £891 billion.

The new pension freedoms announced in April's Budget were expected to lead to a boom in property investment from retirees. Taking advantage of newly available lump sums, anyone aged 55+ could use the money to buy property, which they would then let out to fund their retirement.

Nonetheless, it's not been as plain sailing as many predicted. Issues over tax and the stresses and strains of becoming a full-time landlord have made many think twice. Instead, fully managed property investments – which tend to have more financial benefits than buy-to-let – are becoming increasingly popular. 

“The strength of the housing market is reflected in the growth in the amounts being released through equity release plans which are now an average £68,500 – an amount which dwarfs the average pension pot in the UK,” Dean Mirfin, Technical Director at Key Retirement, commented. 

“The success of property investment for millions of over-65s homeowners highlights how homes are major assets which should be considered as part of anyone’s retirement planning,” he added.

icon

Please login to comment

Zero Deposit Zero Deposit Zero Deposit
sign up