One in thirty high-net-worth (HNW) individuals are relying on their homes to fund 100% of their retirement data from Saltus has revealed.
The latest Saltus Wealth Index surveyed 2,005 people with investable assets of £250,000+ which found that on average respondents expected their property to contribute 44% to their retirement funds.
With house prices falling by 4.7% and the slowdown of the housing market in the last six months Saltus reported that this raises significant concerns about the retirement plans of many HNW individuals.
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Megan Jenkins partner at Saltus, said: “ These findings are alarming as relying solely on property for retirement planning is not a recommended strategy. The cost of purchasing a new home may eat into funds intended for retirement and the unpredictability of the market may result in the need to sell at a lower price than anticipated due to short-term market conditions out of their control.
“There is also a significant emotional aspect to consider, with an understandable attachment people often have to their homes making it difficult to downsize when necessary.
“The recent decline in house prices and challenging market conditions underscore the importance of diversified retirement planning, particularly for HNWIs. Relying solely on property to fund retirement carries significant risk and it is crucial for individuals to have a well thought out and diversified plan that takes into account both the financial and emotional aspects.”