The ‘home is pension’ generation – or HIPpies – has doubled in the last year, according to LV=, as more than half (52%) of working homeowners over 50 plan to use the equity in their home to fund their retirement – compared to a quarter (28%) in 2012.
LV=’s 2013 HIPpies report reveals that the value of the average working over 50s’ property comes in at £258,000 – more than £15,000 higher than the national average of £242,000. As three-quarters (75%) of home-owning over-50s (5 million) own their property outright and those with a mortgage already have £149,640 worth of equity built up in their home, for many unlocking the capital in their home would provide them with a significant income boost. The increase in people using their properties to fund their retirement is likely to have been driven by increasing house values over a long period, and low interest rates on savings.
As well as building up equity in their homes, over-50s have spent an average of £30,000 each creating their perfect home, in the two decades they have lived in their property. Having made such an investment two in five (38%) over-50s say that they want to stay in their current home for the rest of their lives, and this figure rises to one in two (47%) of all retirees. Indeed it’s not just their home that they love, of the 9.6 million British homeowners aged over 50,88% feel a strong connection to where they live and consider themselves a part of the fabric of the community in which they live and would miss their friends if they were to move (39%).
For independent pension advice contact Integrity IFA now on 01316530588.