Michael Stimpson, Partner at Saltus, comments on the proportion of HNWIs that are relying on housing wealth to fund their retirement.

High-net-worth-individuals (HNWIs) are relying heavily on their housing wealth as a retirement fund, according to the second Saltus Wealth Index Report.

Wealth management firm Saltus surveyed attitudes of over 1,000 people in the UK with investable assets of over £250,000 and 84% of respondents said they would be using housing wealth to fund at least part of their retirement, with 70% planning to fund at least 25% of the cost.

The research revealed that younger people are the most likely to be relying on property to fund their later years, with just 7% of 25-34s saying they don't plan to use any housing wealth to fund their retirement.

On average, just one in 50 HNWIs said they plan for 100% of their retirement to be funded by housing wealth, but this doubles to one in 25 for 25-34 year-olds and more than triples for the wealthiest respondents.

Michael Stimpson, Partner at Saltus, said:

The second Saltus Wealth Index Report shows that the majority of people intend to fund their retirement through some degree of housing wealth. While the temptation to fill gaps in pension pots this way is understandable, it is a fundamentally risky strategy. It depends on residential property continuing to retain its value or even rising in value, which is far from a certainty.

Full release: Majority of High-Net-Worth-Individuals now plan to use housing wealth to fund retirement

✉️ Rachel Mason, PR Prose, 07759147131/ prprose@live.co.uk