High-net-worth-individuals (HNWIs) are relying heavily on their housing wealth as a retirement fund, according to the latest Wealth Index report published by Saltus.
A study by the wealth management firm found that 84% of HNWIs would be using housing wealth to fund at least part of their retirement, while 70% are planning to fund at least 25% of the cost.
Saltus surveyed attitudes among more than 1,000 people in the UK with investable assets of over £250,000. The research revealed that younger people are the most likely to be relying on property to fund their later years, with just 7% of those aged between 25 and 34s indicating they don’t plan to use any housing wealth to fund their retirement.
When asked what proportion of their retirement they plan to fund with housing wealth, two in five respondents (40%) said up to 50% of their entire housing wealth, while another 30% of HNWIs said they would use at at least 75% of their housing wealth. On average, respondents in this demographic plan to fund around half (49%) of their retirement using housing wealth, according to the findings.
Despite the study showing the over-65s to be the least likely age group to use housing wealth to fund their retirement (19%), of those that do, a third (33%) are planning for it to cover 100% of the costs.
Partner at Saltus, Michael Stimpson, commented: “The majority of people intend to fund their retirement through some degree of housing wealth. While the temptation to fill gaps in pension pots this way is understandable, it is a fundamentally risky strategy. It depends on residential property continuing to retain its value or even rising in value, which is far from a certainty.
“There really is no substitute for careful financial planning. The best retirement plans are ones where people have been clear about their aspirations and have worked towards their goals in a careful and methodical way in the context of other demands on their spending and saving. It may not be an easy win, but it is the best way to retire in comfort and with peace of mind after a lifetime of hard work.”
Latest News
-
House price growth slows to 3% – ONS
-
Inflation remains unchanged at 3.8% in September
-
£8.8bn worth of BTL loans advanced in Q2
-
Quilter reports third successive quarter of £2bn+ inflows
-
IHT receipts total £4.39bn in six months to September
-
Younger advisers more likely to work with new clients, study finds
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories