28% of working homeowners over 50 intend to access the equity in their home to help fund their retirement, according to LV=.
This represents 1.9 million people, who have been dubbed the HIPpies (home is pension) generation by the retirement finance firm.
The LV= 2012 HIPpies report suggests that while over a quarter are planning to use the equity in their home, 49% of working homeowners over 50 say they would consider downsizing to a smaller property, or using an equity release product (17%) to access the money in their property during retirement.
However, many over-50s are facing a readjustment in their valuation of their home, with 39% of working homeowners over 50 believing their property has decreased in value over the last three years by an average of £21,749.
18% of working over 50s who believe their property value has fallen aim to wait for their property value to improve before considering using the equity to help fund retirement, and a further 9% plan to make improvements to their home to try and increase its value. Despite the uncertainty in the housing market, 54% of working over 50s with children would recommend their child invests in property to fund their retirement.
Furthermore, 35% of working over 50s admit they may need to delay their retirement for financial reasons, with 20% looking at ways to boost their retirement income before they retire such as taking a second job or taking in a lodger. 14% will be retiring when they planned; however will take a lower income in retirement than they originally thought they would. 16% would rather not think about their retirement finances at all.
Vanessa Owen, LV= head of equity release, said: “Turbulent times are still ahead for the UK economy, but despite the uncertainty surrounding the housing market our HIPpies generation have not been discouraged. The number of over 50s planning to use their home as their pension has remained stable when we compare it to our 2011 report.
“A property is often the largest asset people have, so it makes sense for them to see it as a way of helping to provide an additional stream of income for them when they retire.”
