Most Brits still take the view that once they reach retirement, their home will provide for them – although this might be the case for some, it is better to err on the side of caution and ask a financial adviser about your long-term financial potential.

According to a report by LV=, the over-50s homeowners they surveyed believed that an average of £27,250 has been wiped off the value of their homes, when in fact over-50s homeowners have lost £80bn overall in property value due to recent housing market falls.

This is a concern when the insurer says 1.3 million people still plan to use their property value to help provide retirement income. Only 2% say have been turned off the idea of using their home to fund retirement, while a further 11% plan to take advice on unlocking the value of their home before they retire.

The new research also highlights the impact of the long-running house price boom on pension savings behaviour among over-50s homeowners now nearing retirement – people assume their home will provide for them but as any good adviser will tell you, assumption is a dangerous thing.

One in eight people have consciously saved less into traditional pensions because of the perceived spiralling value of their home and a further 13% say they couldn’t afford to buy their own home and invest in traditional pensions, because property prices were so high.

We are all getting older, living longer and saving less – this is a bad concoction and will lead to many people being unable to do what they want to do in their later life.

However, many enterprising over-50 year olds have plans to recoup some of their lost equity and make the most of their property. One in six will make home improvements to add to the value of their house, and one in five say they will save extra money wherever they can. Nearly a third say they will simply bide their time for property prices to recover.

Vanessa Owen, head of equity release ay LV= says: “In a matter of months millions of pre-retirees have seen both their property and pension fund values battered. House prices still have some way to go before full recovery but with increases for six consecutive months now, and Brits are feeling more confident that their home can still play a big part in helping to finance their retirement.”

To find out how your home can help your retirement, and to find out what else you can do to fund your later life talk to a financial adviser. They will tell you the truth, lay out all your realistic options and do everything they can to make your retirement successful

SOURCE: LV=, 01/12/09

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A homeowner loan, with the right advice, can be a simple and easy way to unlock equity in your property. If you either own your own home outright or you have a mortgage then you could be eligible for a homeowner loan, because they are loans primarily secured on your property rather than your financial situation. So why choose a homeowner loan? Because they are secured on your home, this means they could be the answer to those who are self employed, in a new job or for those looking to improve their financial situation. In fact any homeowner could benefit from a homeowner loan.

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