Nearly a third of people approaching retirement still plan to use their property to boost their income despite recent house price falls.
Around 27pc of those aged over 50 said they planned to use money tied up in their home to provide themselves with a retirement income, such as through downsizing or releasing equity, according to life insurer LV=.
The average homeowner in this age group believes around £27,000 has been wiped off the value of their property during the downturn.
But despite this only 2pc of people said house price falls had put them off using their home to fund their retirement.
The research also found that previous house price booms have left many people reliant on the wealth tied up in their property, with 12pc admitting they had saved less into a pension because of the rising value of their home.
A further 13pc claimed they could not afford to buy their own property and invest in a traditional pension because house prices were so high.
A third of homeowners think it will take between three to five years for house prices to return to their former values.
Around 17pc of people hope to recoup some of their lost equity by carrying out home improvements, while 21pc will save extra and 29pc will wait for house prices to recover.
Vanessa Owen, head of equity release at LV=, said: “In the decade leading up to the credit crunch, more and more homeowners saw their property as a potential cash cow to aid retirement.
“But in a matter of months millions of pre-retirees have seen both their property and pension fund values battered. Despite this, their confidence in the long-term value of bricks and mortar remains.”
http://www.telegraph.co.uk/finance/personalfinance/pensions/
