South East retired homeowners 'raising £90,000 from their houses'
22 March 2017
- Pensioners in the South East have shared £670 million in property wealth, Key Retirement analysis shows
- Family and friends benefit from property wealth payouts
More than £670 million of property wealth - the most of any region in the UK including London – was paid out to pensioners in the South East last year, Key’s figures show.
Key’s Equity Release Market Monitor shows pensioners in the South East are boosting their retirement standard of living with payouts of up to £90,000 on homes worth around £495,000.
The size of the payouts mean retired homeowners can tackle a range of issues with a third (33%) using some or all of the money to clear debts, including mortgages and credit cards.
But the detailed study found families are among the biggest beneficiaries with almost a quarter (23%) of retired homeowners using money to help out relatives, including providing deposits to buy their own home.
Retired home owners in the South East were more likely to use their property wealth to help family than go on holiday – just 16% used some or all of the money to treat themselves to trips away.
However, the main motivation for releasing property wealth was to pay for home and garden improvements – nearly six out of 10 (57%) pensioners used some or all of the cash for revamping their property.
Key’s data shows nearly 7,451 pensioners in the South East used their homes to help boost their retirement funds in 2016, the largest amount of anywhere in the UK.
Dean Mirfin, technical director at Key (www.keyadvice.com), said:
“Property wealth, particularly for those in the South East where house prices have benefitted from the knock on effect of strong growth in London, is making a huge contribution to retirement planning, and that is demonstrated by the wide range of issues retirees in the South East can tackle.
“Retirees in the South East are releasing the most amount of wealth from their properties than anywhere else in the UK. The biggest use of property wealth is to pay for home and garden improvements underlining how property wealth can help set up your home in retirement. Equity release is a real alternative for pensioners who are seeing traditional retirement income solutions squeezed by historically low interest rates.”
Anyone looking to release equity from their home can get Key’s independent guide to equity release by calling 0800 531 6027 or visiting www.keyadvice.co.uk/equity-release/request-a-free-guide