Property is key to pension plans for the over-45s despite mortgage worries

Aviva said that long term growth in UK house prices mean the over-45s are turning attention towards property wealth to help manage their finances and boost retirement incomes.
Aviva said that long term growth in UK house prices mean the over-45s are turning attention towards property wealth to help manage their finances and boost retirement incomes.
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​​Two in five Yorkshire homeowners who are over 45 see property as​ ​key to their retirement income plans​, according to the​ ​latest Aviva Real Retirement Report.

​Aviva said that l​ong term growth in UK house prices and homeowners’ lasting attachment to their homes​ ​mean ​the ​over-45s in Yorkshire are turning attention towards property​ ​wealth to help manage their finances and boost retirement incomes​.

But with many facing pressure from existing mortgage debt, a desire to help younger​ ​generations onto the housing ladder, and concerns over making their money last in later​ ​life, the report raises the question: Is there enough house to go around?

The findings show​ that o​ne in five (21​ per cent​) mortgaged over-45s in Yorkshire are worried​ ​about paying off their home loans,​ including 9​ per cent​ who ​say they ​are very worried.

Yorkshire​‘s​ mortgaged homeowners ​who are over 45 ​have outstanding loans​ ​of £79,297 on average​, which is​ 16​ per cent​ higher than the national figure of £68,189. Despite the region’s average debt being above the national average, only 12​ per cent​ are​ ​uncertain about when they will ever become mortgage free, compared ​with​ 17​ per cent​ across​ ​the UK. Another 3​ per cent​ think they will never pay off their​ ​mortgage.

Despite this pressure, Aviva’s research f​ound​ two thirds (66​ per cent​) of over-45​ ​homeowners in Yorkshire ​believe​ that their home is worth more than​ ​their pensions, savings and investments combined.

Owner-occupied homes among Yorkshire’s over-45s are worth an​ ​average of £218,868, which is 17​ per cent​ lower than the UK average of £264,402.

​The report said that beyond the pure financial considerations, many have also developed a strong attachment to their home with the average over-45 homeowner in Yorkshire owning just three properties during their lifetime.​