New research has revealed that one-third of over 50’s will use their home as pension. Insurance group LV recently indicated that 2 million intend to use equity in their home to help fund their retirement, an increase of 500,000 since 2010.
Dubbed the ‘HIPpie’ (Home is Pension) generation, one-half intend to downsize, one-fifth plan to use an equity release scheme, and a further fifth would consider moving to a less expensive area.
This comes in spite of news that over a third of home owners in this age group estimate that the value of their property has dropped by an average of £24,651 in the last three years.
Of those surveyed, only one-fifth felt that their finances were secure enough to allow them to retire as planned. 36% felt that they would have to delay their retirement for financial reasons, while 16% would rather not think about their retirement finances at all.
In fact, 45% of people approaching retirement age are considering alternative sources of income once they stop work, owing to an uncertain economic future.
Third 'plan to use home as pension' - The Press Association
Third of over-50s 'will use home as pension' - Herald Scotland
Home is pension for a third of retirees - Mortgage Introducer