Recent research has found that the UK pensioners with the lowest income have among the greatest levels of homeownership.
This is according to analysis by Just Group, who are now considering if owning a property in later life can act as a safeguard against poverty.
During 2016/17, data from the Office for National Statistics found that the level of home ownership for retired households at the bottom end of the income scale was 89%. Over the three years, this has grown from 40,000 to 660,000 households.
For the middle-income bracket, the proportion of those owning their home drops to 66%, significantly less than those at the lowest disposable income. For the richest group, however, the share rose to 94%.
Commenting on the figures was Stephen Lowe. The group communications director at Just Group said: “Property is often claimed to be the best way to save for retirement but looking at the figures it is striking that among the retired, higher home ownership levels doesn’t equate to higher income.
“In fact, we see that both the poorest and the richest pensioners are among the most likely to own their homes, with those who live on average incomes less likely to do so. It is worth pointing out that it is how much you accumulate in State, employer and private pensions that appear to make the most difference to how much income you have in retirement.
“That’s a strong argument in favour of ratcheting up pension auto-enrolment minimum contributions and encouraging the self-employed to pay into pensions too. It is also noticeable too that the pensioners with the lowest incomes also receive the lowest benefits. It’s important they make sure they are claiming their full entitlement and not be put off making inquiries just because they may own a property.
“Overall, the message is that building up a pension is one of the best tools for delivering retirement income but those with property do have choices. Either way, people need to ensure they take guidance and advice to use their assets wisely.”
