Pensioners' wealth soars Â£9bn in six months thanks to property boom
The average over-65 has made more than £500 a month since January as property prices have continued to rise. And for pensioners who own their homes outright, the news is even better, they have earned an average of £2,096 tax-free in the same period.
The figures have been revealed in KeyRetirement.com’s Pensioner Property Index, which tracks the equity held in property by UK residents aged over 65.
Unsurprisingly, it shows that London residents have done best, with property price rises of nearly £21,000. At the other end, Scottish pensioners have suffered losses of more than £8,500.
In the South East, pensioners have enjoyed an above-average rise of £5,148 each, taking their total shared wealth to £3.377bn.
In the North West, pensioners saw an average drop in property value of £134 decrease, a total shared loss of £89.59 million.
In the East Midlands, pensioners have enjoyed an above-average rise of £3,048 each, taking their total shared wealth to £1.31bn.
In Scotland the picture is bleaker than anywhere else in the UK. The average loss of £8,536 per household means Scottish pensioners have seen £2.4bn wiped off their shared wealth.
In the North East, pensioners saw an average £1,488 drop in the value of their property, a shared total loss of £338.2 million.
In Yorkshire and the Humber, pensioners saw an average £3,651 drop in the value of their property, a shared loss of £1.05bn
Dean Mirfin, technical director at KeyRetirement.com said: “Property wealth is a huge asset for pensioners and is making a massive contribution to standards of living in retirement reflecting the success of investing in a home.
“The different housing markets around the country show prices do vary but the long-term story is that property wealth is still growing as highlighted by our research which began in 2010.
“The contrast between the average £76,000 that can be generated from property wealth and the value of average pension savings underlines how vital it is to seek independent expert advice on how to use housing wealth.”