NEWS COPY
By Astrid Hall
The majority of ‘baby boomers’ are now enjoying life mortgage-free and sitting on a potential £280,000 property nest egg.
New research from SunLife shows the average over-55-year-old has lived in the same property for more than 20 years, during which time house prices have shot up by over 300 per cent.
While property now accounts for over a third of UK households’ net wealth, one in five asset-rich, cash-poor baby boomers consider they are struggling financially, blaming the rising cost of living and poor interest rates for feeling “worse off”.
Four in 10 over-55s are still giving financial support to their children or grandchildren, with a fifth admitting their kids need more help with money than they’d planned for.
It is unsurprising that eight in 10 homeowners are now prepared to either use equity release or downsize to get hold of some of the cash locked in their property.
SunLife’s CEO Dean Lamble said: “Equity release is becoming an ever-more-popular way for people to help fund the retirement they want.
“Not everyone is eligible or suitable for equity release, but someone takes out equity from their home every fifteen minutes in the UK.
“It’s clear that equity release is fast becoming the preferred choice among people over 55 to help fund the retirement they want.”
To help everyone see how much their home has gone up in value since they bought it, SunLife has produced the ‘How Much Has My House Made Me’ tool, where users can see how much their home has gone up in value since their purchase. They can also find out how much equity they are eligible to release.
Dean Lamble said: “It’s clear that equity release is worth considering as a way to get hold of money for home improvements, to pay off an existing mortgage so there’s more money each month, or to give children some of their inheritance early, perhaps to help them get on the property ladder.
“We may not have all seen our house price triple in value since we moved in, but the tools are a useful way of finding out how your home may have changed in value – and if you’ve lived in your home for three or more years, the chances are you’ll see an increase.”
ENDS