If you are retirement planning in Cheshire, you could almost double your savings pots by releasing equity from your property. According to new research, homeowners investing £69,000 of property wealth into their retirement pot could gain about five years of earnings in later life.
Homeowners are in prime position to benefit from the rise in property rises, which now averages £298,000 nationwide. While house price inflation is bad news for new buyers, the market is advantageous for existing property owners.
If your average drawdown when retiring is £72,000, with equity release, you could save an additional £69,000 – resulting in a retirement pot of £141,600. According to retirement analysts, many people enter their advanced years unable to sustain their preferred lifestyle on pension savings alone. This will present a significant challenge as people live longer lives and need to meet associated costs, such as residential care.
For this reason, property wealth and products such as equity release will increasingly become integral to future retirement planning, as people use their property equity to top up their retirement money.
Regionally, homeowners in London and the South East stand to gain the most from their property – but even in areas like Wales, property owners in towns such as Blaenau Gwent and Merthyr Tydfil have – since 2019 – seen property increases of 49% and 46% respectively. Such local variations are bound to have implications on how much each individual can access, and it is therefore likely that people in some areas will take a bigger percentage than others.
