Over 45s relying on property to fund retirement

27 July 2016

Almost half of over-45s are counting on property to deliver their income in retirement.

According to Aviva’s latest Real Retirement report, 46% of over-45s say their property will play a key role in funding their retirement income, with 69% owning a home that is worth more than the sum of their pensions, savings and other investments.

However, of those that were still repaying the loans on their homes, 23% were worried about when they would be able to pay off their mortgage and 16% were concerned that in order to stay in their home they would need to borrow into retirement.


Increasing the pressure, a further one-in-three over-45s said they wanted to be able to give their children money to buy their own home.

More than half of those surveyed (56%) also said that they expected to need the equity in their home to pay for care in later life.

At the same time, with the average respondent, living in their current home for 21 years, 80% were keen to remain in it for as long as it was physically possible.

With so many calls on their wealth, coupled with a desire to stay in the family home, Clive Bolton, managing director of retirement solutions at Aviva says the findings raise the question of whether there is enough ‘house’ to go around.


“Later life brings a host of financial challenges and pressure points, which suggest it would not be wise to place all retirement bets on the house. The equity built up in people’s homes may sound like a lot, but considering that many can be retired for 20 years or more and often want to help their families as well as themselves, it’s easy to overestimate how far that money will take them.”

He adds: “As well as boosting day-to-day funds, people also earmark their property wealth to help pay for care, leave an inheritance and help younger generations onto the housing ladder. There are also widespread worries about paying off mortgages to address in later life, along with general desire to avoid needing to move from the place they call home.”

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