Total residential property wealth held by the over-60s is estimated at £2.92trn around three times more than the total market value of all DC pension assets in the UK at £950bn, analysis published by Key Equity Release has revealed.

Once buy-to-let (BTL) property wealth is added, over-60s property wealth rises to £3.84trn.

Property wealth typically represents more than 40% of total household wealth for the over-60s but is not being made full use of in retirement planning currently, Key said.

Around six out of 10 (59%) of over-60s currently have some DC pension assets with the median amount held estimated at £102,000 compared with average house prices of around £270,000. However, around a quarter of over-60s have DC pension funds of less than £25,000.

Will Hale, CEO of Key Equity Release said: “The colossal switch towards DC in the UK pension landscape dramatically demonstrates why property wealth is increasingly important in retirement planning.

“Over-60s approaching retirement with modest DC pension pots need to look at all their assets and consider all options for funding their wants and needs in retirement. Property wealth has to be part of the mix.

“With property wealth typically representing more than 40% of household wealth and the value of residential property wealth held by the over-60s massively outstripping the market value of all DC pension assets it is important that advisers and clients consider all their options.

“Advisers should consider referrals to trusted specialists in situations where their own qualifications or scope of advice limit their options in order to ensure better outcomes for many more customers in later life.”

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