seven in 10 Brits would use property to fund retirement

More than seven out of 10 people in the UK would consider using the value in their homes in some way to boost their retirement finances, research suggests.

According to data from the Equity Release Council – formerly known as SHIP – the most common way that people would look unlock equity would be via downsizing, followed by renting out a room and equity release.

Those who have a second property such as a buy to let investment or holiday home might consider renting it out for income, or selling the property if they needed to improve their retirement finances, the study also indicates.

Six in 10 people polled aged 25 to 34 said they would consider downsizing for retirement, compared with just 39 per cent of 55 to 64 year olds.

When asked to list what they thought would be the top sources of income in retirement, an employer pension, private pension and savings/ investments came out on top.

But across all age groups, 61 per cent of the 1,775 people surveyed said property would be one of the top three sources of finance in retirement.

Nigel Waterson, chairman of the Equity Release Council, said: “With such a heavy potential reliance on the equity tied up in UK residential property, it is vital that consumers receive accurate information and access to specialist advice and products which have excellent safeguards.”

Free guide: Top ten retirement tips

Follow Myfinances.co.uk on Twitter: @news_myfinances

Sign up to the Myfinances.co.uk newsletter to receive the latest financial news direct to your inbox.