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Pensioners' Property Worth Now Over £1 Trillion

Pensioners in the UK now collectively possess more than £1 trillion worth of property, according to a new report.

Pensioners in the UK now collectively possess more than £1 trillion worth of property, according to a new report.

Research from KeyRetirement.com shows that the value of property owned by those of pension age has reached a new record high. For those who have paid off their mortgage, the average property wealth has increased by £19,000 between May 2016 and August 2016.


Regionally, the largest rise in property wealth was seen in East Anglia, with an average increase of £49,040. However, the South East is now the wealthiest region for pensioners, overtaking London and accounting for a fifth of all UK pensioners’ property wealth.


All UK regions saw an increase in average wealth with the exception of London and Scotland. The capital saw a decrease of £62,581, whilst the average wealth value fell by £15,916 in Scotland.


Whilst there has been a marginal fall in the three months to August for the average property wealth of Londoners, since 2010 the average has also risen by £137,000, with the rest of the UK seeing an increase of 24% overall.


The report also found that many pensioners are now choosing to use equity release to free up their pensions and their money.


KeyRetirement stated that they are now releasing an average of £76,300 to pensioners across the UK and more than £184,000 to those living in London.
Commenting on the research, Dean Mirfin, technical director at KeyRetirement said: ‘The long-term story as highlighted by our research is that property has performed very well with average over-65’s making more that £9,000 a year during a period of record low interest rates and stock market volatility.’


The report follows comments from the Bank of England’s chief economist last month that investing in property would be more profitable than a pension.

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