09 Nov 2017
Scottish homeowners over 65 are reported to have seen the value of their property jump by a total of more than £3billion between May and August - an average increase of just over £12,000.
These statistics come from over-55s finance specialist Key
Retirement, which tracks the amount of equity held in UK homes by
It said that this group's property wealth hit a new record of £1.1trillion in August - up £47billion since May as the property market recovered across all regions.
Key Retirement added that retired homeowners have seen growth in housing wealth of £321billion since 2010.
Dean Mirfin, of Key Retirement, said: “The strength of the housing market over the three months has significantly boosted property wealth for pensioners.
“Prices may not continue to grow as fast, but pensioners who have paid off mortgages can still rely on tax-free returns no matter what happens in the short and medium term.
“The average homeowner is releasing through equity release the equivalent of the gains made since 2010, and property wealth is having a dramatic effect on the standards of retirement living for many thousands across the UK.”
Key Retirement said that equity-release customers are can save tens of thousands of pounds from lower interest rates.
The cost of raising money through lifetime mortgages, a popular form of equity release, has dropped significantly over the past five years.
A customer today releasing the average amount of £70,625 could save as much as £75,000 in interest over 20 years.
Mr Mirfin said: “Retired homeowners are benefiting from record growth in the equity-release market, as increased competition drives down the cost of borrowing.
“The fall in rates over the past five years has been significant and is helping more customers support their family, as well as themselves, as equity release makes a major contribution to the retirement standard of living.
“Existing customers can also take advantage of falling rates, but it is important they ensure they take independent specialist advice before making any decisions to switch as savings from lower rates need to be balanced against any early-repayment charges.”
Retirement may seem a long way off, but are you saving enough now for a comfortable retirement in the future?
With the state pension and some private pensions falling short in terms of what they provide in retirement, can you rely on these alone to provide sufficient income?
It can be hard to plan for tomorrow when we’re busy living for today, but if you begin planning and saving now you’ll have more options in the future.
Our independent financial advisers can help you devise the correct investment and saving strategy to allow you to enjoy the lifestyle you want when you retire.