Over 55s property wealth is set to double in 20 years
06/11/2015
The total property wealth owned by people aged over 55 is set to double to a massive £2.5 trillion by 2035, according to research conducted by Age Partnership.
At the moment, people aged over 55 in England have a total of £1.2 trillion worth of property wealth. This is set to rise by 105% to £2.5 trillion in the next twenty years if property prices in the UK rise at an annual average of 2%. Even if house prices do not increase at all over the next 20 years, the housing wealth of the over 55s will still increase by 38% to £1.7 trillion.
Age Partnership also found that the population of people aged over 55 is set to rise over a third by 2035 as people increasingly live longer. This compares to a 10.8% growth of the entire population.
Simon Chalk, equity release expert at Age Partnership, commented:
“We are witnessing a radical long-term shift towards people reaching retirement age with a hugely significant nest egg in the form of property wealth. In twenty years’ time, people at or near retirement could be able to tap into a combined extra £1.3 trillion of property wealth to help fund their retirement.
“Many baby boomers currently reaching retirement age are fortunate enough to have amassed both property wealth and a sizeable pension. But for those whose pension savings aren’t sufficient to fund the retirement lifestyle they want, their housing wealth can be used to top up their pension income or help fund major purchases. As the number of people retiring with generous defined benefit pensions declines over the long-term, housing wealth could become even more important in retirement planning in twenty years’ time than it is today.”
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