Post-war generation's equity worth £543bn
Property held by the baby boom population is thought to be worth £543 billion and could help to ease the pension crisis, according to new market research.
Research by Prudential has revealed those in the 50 to 60 year old age group have equity which could add up to £1,425 by the time they all reach retirement age (2020).
It is a huge resource which the study shows many people will take advantage of to meet shortfalls in their pensions.
Nearly 13 million people expect property to form part of their pension and 1.8 million are relying on it to make up over 50 per cent of their retirement income, making property more important than savings and investments in retirement planning.
For those hoping to use their property to help fund retirement, 19 per cent will downsize to release equity and around ten per cent will use a lifetime mortgage or equity release scheme.
Ali Crossley, an advisor from Prudential, said: "Property can form a great part of a retirement planning portfolio. It may be too late for people approaching retirement to build up a supplementary source of income using a pension, savings or investments. However the equity tied up in their homes could be instrumental in boosting their funds."
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