Growing necessity of using property wealth to fund retirement

James Daley, managing director at Fairer Finance, discusses the growing necessity of using property wealth to fund retirement, highlighting that "as many as 51% of people will need to use their housing wealth in retirement by 2040." As traditional pensions decline, owning a home is increasingly becoming a crucial asset, he claims. However, social stigma and regulatory barriers hinder this shift. Daley calls for collaboration among government and financial institutions to dismantle these barriers and promote the use of property in retirement planning. He emphasises the critical requirement for suitable retirement housing, stating that "retirement homes are in desperately short supply." By addressing these issues, the potential for increased consumer spending could exceed £20bn annually, concludes Daley.  

City AM (28/05/2025)