Research by equity release lender more 2 life has revealed that almost a third of over-55s would rather use property wealth to fund their retirement before accessing their pension funds.
The pension freedoms introduced in April this year have triggered a shift in how savers view retirement planning and income sources. As a result, over a quarter of those surveyed would welcome the ability to borrow against the value of their pension funds.
With this in mind, more 2 life believes retirement lenders need to be more innovative in the way they work to appeal to those who wish to consider using property wealth and borrowing against pension funds.
"The tax efficiency of using housing wealth alongside pension savings is becoming clearer now that pension freedoms are up and running," Dave Harris, managing director at more 2 life, commented.
“It is likely that traditional retirement income products will be replaced – or at least complemented – by new investment strategies as savers look to maximise the returns from all their assets including property wealth and pension funds."
He added: “Retirement lending needs to be addressed as part of that and it is a real growth opportunity for lenders and advisers which will genuinely benefit customers. With retirees in the UK controlling around £1.4 trillion of property wealth, the opportunities for creating a more comfortable, financially secure retirement through lending solutions are enormous.”