Fairer Finance’s new Retirement Compass finds millions sitting on untapped housing wealth as pension shortfalls loom

Millions of UK homeowners heading for a retirement income shortfall are sitting on substantial housing wealth they are not yet accessing – an untapped opportunity that if unlocked, could significantly improve living standards in later life. That is the central finding of the new ‘Retirement Compass: the Later Life Finance Index’; new research published today by independent consumer group Fairer Finance which calls on Government, regulators and the wider industry to work together to help people make better use of their housing wealth in retirement.

The Second Pensions Commission’s Interim Report found that 15 million people are currently under-saving for retirement, yet 75% of households aged 55-79 are homeowners. Last year, Fairer Finance modelling found that by 2040 half (51%) of UK households aged 60 plus could benefit from accessing their housing wealth to support their spending needs in later life – contributing £21bn to the UK economy. This new independent research, commissioned by the Equity Release Council, the representative industry trade body and standards setter, builds on those findings to reveal who might need to access their housing wealth and their attitudes towards doing so.

A retirement income gap hidden in housing wealth

Fairer Finance’s new modelling suggests that 65% of single female homeowners aged 55-79 will have a retirement income below the Pensions UK moderate living standard (£31,700 per year for singles and £43,900 for couples, net of tax), yet they hold on average £225,000 in housing wealth. The pattern holds across household types: 44% of single male homeowners face the same scenario (also with average housing wealth of £225,000), as do 37% of couples (who hold an average of £275,000). Despite owning significant assets, millions are not drawing on them to close the gap.

Single women are hardest hit

The study found that over six in 10 (65%) of single female homeowner households aged 55–79 will not meet the Pensions UK moderate living standard (£31,700 per year for singles), compared to four in 10 (44%) of single male households. This is despite both groups holding similar levels of housing wealth (£225,000 on average).

The research also finds that 52% of women aged 18–54 feel insecure about their family’s economic security in retirement, compared to 47% of men. Among older homeowners aged 55–79, that gap is even wider: 32% of women feel financially insecure in retirement, against just 20% of men.

Even homeowners with substantial property wealth are not immune. 41% of single female homeowners with £400,000 or more in housing wealth still fall below the Pensions UK moderate retirement living standard – as do 21% of couples with equivalent property wealth (nb there are many more couple households in this bracket).

Many households with low retirement income could access significant housing wealth to bridge the gap

In total, 3.7 million homeowner households aged 55-79 will have retirement income below Pensions UK moderate. This is 46% of homeowner households aged 55-79. 1.8 million homeowner households aged 55-79 have £200k-400k of housing wealth, and a further 650,000 have at least £400,000 of housing wealth.

Note: modelling of homeowners aged 55-79, including those with mortgages. The Pensions UK retirement living standards are different for couples and singles. Housing wealth <£200,000 excludes non-homeowners. Numbers may not sum due to rounding.

Source: Fairer Finance.

High awareness points to a wider engagement opportunity

Fairer Finance found that 70% of homeowners aged 55–79 were aware of equity release, yet only 13% had previously ever considered taking a lifetime mortgage. Since 1991, more than 680,000 homeowners have accessed over £50bn of property wealth through equity release.

When it comes to supplementing their pension income in future, 58% of homeowners aged 55-79 said they’d reduce spending or adjust their lifestyle, 38% would downsize to a cheaper home and 28% would continue/return to work. In comparison, just 14% would explore utilising their property wealth.

The research suggests the key barrier is not awareness, but engagement and understanding: many people never take the first step to explore how housing wealth could support their retirement options.

Attitudes are shifting, particularly among younger generations

The later life lending market represents a substantial untapped opportunity for many homeowners, as social norms continue to evolve. Five in 10 (59%) of consumers aged 18–54 agreed that it is becoming more acceptable to have a mortgage in later life. This is a sharp increase on 2021 and 2023, when 34% and 39% of UK adults agreed that it was becoming more acceptable to have a mortgage in later life.

Similarly, over 6 in 10 (67%) of consumers aged 18–54 agreed that it is becoming more common to have a mortgage in later life. This is another sharp increase on 2021 and 2023, when 34% and 39% of UK adults agreed that it was becoming more common to have a mortgage in later life.

What the experts say

Tim Hogg, Director of independent consumer group Fairer Finance, said: “It’s important to help people save more into their pensions, but if we focus on pensions alone then we overlook a major asset that millions of households already hold. Our research shows that huge numbers of people heading for a retirement income shortfall are sitting on significant housing wealth which could bridge the gap, if they want it to. The picture is particularly stark for single women, who face the highest risk of low living standards in retirement, despite often owning homes worth hundreds of thousands of pounds. Silos in regulated advice markets mean many people are not presented with all their options for borrowing in later life, and many don’t see downsizing as a viable option because there is a lack of desirable retirement housing. Tackling these barriers will help millions of people improve their living standards in later life. We need policymakers, regulators, and firms to work together to overcome the barriers that are preventing people from seeing their pension and their property as part of the same financial picture.”

Jim Boyd, Chief Executive, Equity Release Council, the representative trade body for the UK equity release market, said: “Following the Pensions Commission’s recent warning that 15 million people are under-saving for their retirement, Fairer Finance’s research explains how housing wealth can provide a lifeline for our rapidly ageing population and transform retirement living standards.

“Despite property being the largest asset for homeowners, too often it is considered separately from pensions and savings and there is a lack of knowledge among consumers how property wealth can fund longer lives in retirement. Property wealth is currently not part of the mainstream retirement conversation and there is a lack of actionable advice around housing wealth, and retirement options are biased toward pensions with a real risk that this important asset is overlooked.

“As attitudes towards later life lending continue to evolve, it is vital that people can access clear information, appropriate advice, and products with strong safeguards, so they can make informed choices about what is right for their circumstances.

“The challenge to Government and regulators now is to create a system that helps consumers consider all their options in the round and use their assets more effectively to support financial wellbeing in later life. Failure to grasp this issue now may consign millions of people to poorer living standards.”

Policy recommendations

The research renews Fairer Finance’s five recommendations from its 2025 report, calling on Government and regulators to:

• Substantially increase the supply of suitable, desirable retirement properties in the communities where older people wish to live.
• Lower the financial cost of downsizing by reducing stamp duty for people in later life.
• Normalise the use of housing wealth to maintain living standards in retirement.
• Develop a personalised service that brings pension and housing wealth into a single view.
• Reform FCA regulation around later life advice to break down silos and ensure consumers can maximise all their assets as they approach retirement. Since our 2025 report, the FCA launched a market study into later life mortgages. We’re calling on the FCA to follow-through on this and break down the silos.

To read the report in full please click here. For more information on Fairer Finance please visit www.fairerfinance.com.

Notes to editors

For further information, please contact:

Karen Mignon, KM Comms: karen@kmcomms.co.uk / +44 7766 651327

Louise Ahuja, KM Comms: louise@louisebcomms.co.uk / +44 7788 676913

1 Fairer Finance ran a survey of homeowners (including those with mortgages) aged 55-79: we have data on attitudes from 3,000 participants; and data on financial circumstances from over 4,000 participants. We modelled different outcomes for female singles, male singles, and couples. By way of a simple benchmark, we compared retirement income to the 2025 Pensions UK retirement income standards which provide an estimate of income adequacy. Fairer Finance also ran a survey about attitudes on 2,000 consumers aged 18-54. Fairer Finance coupled this research with new analysis of market-wide data on equity release sales in H2 2025, collected through the Equity Release Council.

2 Britain is undersaving for retirement warns Pensions Commission – GOV.UK

3 Office of National Statistics

4 How can housing wealth bridge the later life funding gap? | Fairer Finance

5 2025 Pensions UK moderate living standards, net of tax. Pensions UK estimate a significantly higher proportion of working age adults will not reach the moderate living standards. Fairer Finance’s modelling focuses on homeowners aged 55-79, who are on average better off than the working age population. Home – Retirement Living Standards

6 Equity release via members of the Equity Release Council

About Fairer Finance

Fairer Finance is an independent consumer group, consultancy and ratings provider whose mission is to help create a financial services market that is fair for consumers as well as the companies that serve them. With a heritage spanning over a decade, it regularly engages with regulators, government, and industry bodies helping to influence and shape new pieces of legislation and regulation. Its independent economic impact studies inform evidence-based policy.

Fairer Finance’s unique and impartial Product Ratings are simply designed to help consumers make sense of the complex world of financial products. It rates over 6,000 products spanning over 20 sectors, ranging from bank accounts, credit cards, car insurance and travel insurance. The Customer Experience Ratings are designed to help consumers make more informed decisions based on quality and service and not just price (e.g. trust, complaint-handling, transparency etc).

About the Equity Release Council

The Council is the representative trade body for the UK equity release market. Plans that meet the Council’s standards come with six product safeguards: no negative equity guarantee; fixed or capped rates for life; the right to port; the right to make overpayments; no early repayment charge if you move into care provided a medical certificate is provided and secure tenure for life. These safeguards are underpinned by mandatory independent legal advice which ensures the customer understands the risks and implications of the plan.

It leads a consumer-focused UK based equity release market by setting authoritative standards and safeguards for the trusted provision of advice and products. Since 1991, over 688,000 homeowners have accessed £50bn of property wealth via Council members to support their finances.