North West pensioners cash in on ₤432,000 a
day from their homes
PROPERTY wealth boosted the retirement standard of living for pensioners in the
North West by more than ₤38.8 million in the 1st 3 months of 2017,
more than ₤432,000 a day, new analysis from leading over 55's finance specialist
Key Retirement shows.
Its Equity Release Market Monitor shows retired homeowners made around ₤56,220
Tax free each on average by cashing in on their homes in the 1st 3 months
of 2017, with sales of equity release plans up by 33% over the same period
The detailed study, which also analysed the reasons for releasing equity across
the whole of the UK, found the main motivation for using property wealth was to
fund home and garden improvements with 62% using some or all of the cash for
revamping their property.
The size of the payouts are having a major impact on the standard of living in
retirement, enabling pensioners to tackle a range of tougher financial issues
with 30% using some or all of the money to clear debts (including:- credit cards
and loans) and a further 22% repaying an outstanding mortgage.
Families are also big beneficiaries with 22% retired
homeowners using money to help out relatives, including providing deposits to
help with a property purchase. They are making the most of the wealth in their
homes for themselves as well as 32% who have used some or all of the money for holidays.
Dean Mirfin, technical director at Key Retirement, said:- "Property wealth
is making a huge contribution to retirement planning, and that is demonstrated
by the growth in the value of equity being released in the North West. A
large percentage of pensioners are also helping family members at a time when
younger generations are feeling a tighter financial squeeze and the money
released from properties can really be life changing. However, the biggest use
of property wealth is to fund home and garden improvements, underlining how
property wealth can help get your home retirement ready. Equity release is a
growing alternative for pensioners who are seeing their savings squeezed by
historically low interest rates."
Anyone looking to release equity from their home can get Key's independent guide
to equity release by visiting:-