‘My property is my pension,’ say homeowners looking to supplement their retirement income with a £70,000 investment.

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‘My property is my pension,’ say homeowners who have each raised £70,000 to supplement their retirement income.

PENSIONER HOMEOWNERS are boosting their retirement savings by over £70,000 by tapping into the equity in their homes.

More than half of retired homeowners can now access more wealth from their property than from their pensions, as house prices continue to rise.

According to new figures, the average pension pot in England and Wales is worth £61,930, but homeowners in England and Wales release £72,988 in equity from their homes through equity release.

That’s a £14,000 increase in just five years, when the average house price has risen by 24%.

The majority of people do this by taking out an equity release plan, but others will do so by downsizing to a smaller home.

Equity release allows people over the age of 55 to access the untapped equity in their home tax-free and convert it into cash they can use right away.

As retirement incomes are squeezed, inflation rises, and property values rise, it is becoming increasingly popular.

According to new research from Legal and General Home Finance, one in seven people over 50 say they will either use equity release after they retire or downsize their home to raise money.

Equity release customers typically release a quarter of the value of their home, according to Landamp;G’s chief executive Claire Singleton, making them the most valuable asset available to many UK homeowners.

Official figures show that house prices increased by 11.8 percent in the year to September 2021.

“We anticipate that using your home to fund your retirement will become more common,” Singleton said. “Whether it’s downsizing to free up funds or releasing money tied up in your home through equity release lifetime mortgages,” he added.

Individuals aged 55 and up can use equity release to withdraw funds from their home without having to make monthly payments.

The most popular option is a lifetime mortgage, though home reversion plans may be a better fit for some.

According to the Equity Release Council, between April and June, more than 20,000 homeowners over 55 unlocked £1.17 billion in property wealth.

According to Canada Life, the over 55s have a combined property wealth of £740 billion, allowing them to withdraw much more.

The amount of money that homeowners can release is determined by the value of their home.

They have a legal right to live there.

“News from the Brinkwire.”

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