Poor pension? Your property could hold the financial solution
House prices have grown almost twice as fast as the average retirement income, a report by the Equity Release Council has revealed.
The news could therefore provide many cash-poor retirees some much needed financial support.
According to data from the Land Registry and Office for National Statistics (ONS), houses prices have increased by 91% - or £109,399 - over the past 15 years.
Meanwhile the average pensioner’s income has increased by just £6,343 (46%).
House price vs. retirement income
|House price growth||Retirement income growth|
|Fifteen year growth||+91% (+£109,399)||+46% (£6,343)|
|Ten year growth||+21% (£40,422)||+22% (£3,687)|
|Five year growth||-8% (-£19,017)||+4% (+£809)|
Richard Espley, Head of Equity Release, comments:
“It comes as no surprise that long term house prices have soared over the past 15 years. These figures, however, help reinforce the financial safety net many cash poor retirees have at their disposal.
“Equity release allows retirees to unlock some of the funds tied up in their property and, as a result, enjoy a much more comfortable retirement.”
Content correct at time of publication