More than 7.6 million people are banking on their houses to help fund their retirement ahead of other long-term savings, research from Lincoln Financial Group shows.
The research found that 51 per cent of homeowners regard their home as their major asset for providing for retirement after their pension, while 36 per cent say they have other assets. The figure rises to 57 per cent for those nearer to retirement in the 55 to 64 age group.
Ian Noble, head of strategic partnerships at Lincoln Financial Group commented: "We all know the phrase "safe as houses" but it appears many of us are perhaps taking it a bit too literally by relying on our homes to fund our retirement after our pensions.
"Of course it can be difficult building up other savings while paying off your mortgage and also investing in a pension. But it is potentially risky to believe that your home will provide for your retirement if your pension is not sufficient.
"There are issues to consider when using equity from your home to pay for your retirement such as having to move house to a smaller home and possibly moving away from an area you are familiar with. Many will not want the upheaval.
"Similarly there are technical issues such as planning for inheritance tax and how to invest any equity you do release from your home. It can therefore make sense to build up savings while you are working and possibly to defer clearing your mortgage.
"Whatever the case we would urge everyone to seek advice from independent financial advisers on planning for retirement and to think through their saving and investment plans. You will with a bit of luck be a long time retired so it makes sense to plan."
