Almost 1-in-10 plan to use property wealth to fund retirement

Releasing equity a potential solution for retirement income shortfall

Written in line with our editorial policy.

New research from LV= reveals that thousands of people are expecting equity in their home to form part of their retirement income plan.

The leading insurance and pensions company has just published the latest quarterly results of its ongoing Wealth and Wellbeing Research Programme. This wide-ranging research included insights into how people are saving and planning for retirement.

Some of the findings suggest that the cost-of-living pressures felt in recent years are impacting people’s ability to save for retirement. According to the findings, more than half (54%) of non-retired UK adults surveyed say they might not have enough money saved for a comfortable retirement. 

This follows research by Legal & General, which we reported on in March. This found that fewer than three in ten (28%) of Generation X (born between 1965 and 1980) believe they’re on track for a comfortable retirement. That compared to the younger generations of Gen Z (50%), Millennials (47%) and Baby Boomers (37%).

How will people fund their retirement?

The LV= research asked people how they would fund their retirement income. Unsurprisingly, pension income of one form or another featured heavily. Of the people surveyed, 44% said that their main source of income would be from workplace or personal pensions. Meanwhile, 39% plan on using their savings and investments.

Confirming the earlier point about concerns relating to the level of retirement income, 19% said they expected to rely solely on the State Pension. 

LV= also say that 9% of those surveyed said they plan to use the value in their home to fund their retirement by either downsizing or equity release:

• Downsizing typically involves selling up and moving to cheaper property. 
• Equity release is most commonly a lifetime mortgage, where over 55s can take out a secured loan based on their property’s value, without having to move or sell the property.

This isn’t the first time that the LV= Wealth and Wellbeing Research Programme included findings about people’s openness to equity release. In February, we reported that over a quarter (27%) of respondents said they would consider using equity release as part of their financial planning for the future.

You can take out equity release AND downsize

In fact, retirees don’t have to make a black-and-white choice between equity release and downsizing. It’s possible to use both financial tools to help fund a more comfortable retirement.

If downsizing is currently an option for you, that may prove to be a better choice than equity release. But it doesn’t mean that you can’t turn to equity release later on, when you are older and perhaps unable or unwilling to downsize again.

Likewise, if you choose to take out an equity release plan now, that doesn’t mean you can’t downsize in a few years. We have previously written articles on The effect of equity release on future downsizing and What is equity release downsizing protection?

Please make sure that you take professional advice when it comes to decisions as important and potentially complex as these. This article is for information purposes only, and is not a substitute for professional financial advice or specialist equity release advice.

Call for equity release advice and information

To learn more about how equity release works and whether it could be right for you, get in touch today for a personalised, no-obligation quote at the latest equity release interest rates.

Just call us on 0800 096 2215 or request a call back and we’ll arrange a no-obligation appointment with one of our selected equity release advisers for you. Or to get a quick estimate of how much you could unlock from your home, why use our free online equity release calculator.

Source

Research findings: Retirement unlocked: LV= reveals must-know insights for every age group. IFA Magazine. Accessed 20/06/2025.