Nearly half of homeowners are less confident about using equity from their home to supplement their pension, according to MetLife Europe.
The research also found almost a third of homeowners are less confident of using equity from property than a year ago, since house prices started to slide.
Those aged 55 and above have suffered the biggest drop in confidence in property forming part of their retirement savings; nearly half of this age group are less confident than a year ago.
Marking an end to the UK’s decade-long housing boom, analysts are predicting house price falls of at least 10% this year, shattering consumer confidence.
Prices are predicted to drop by a total of 23% before the housing market is expected to bottom in 2011.
Currently, about 16% of homeowners rely on equity in their home for their pension.
People nearing retirement are most at risk if they need to cash in their property immediately, as housing market weakness reduces equity homeowners can release from their property to boost retirement income, according to MetLife.
Ed Gardner, chief executive officer at MetLife UK says the fall in house prices should act as a wake-up call for people who have assumed their property is their pension.
“Of course, equity tied up in your home can form part of retirement planning but, as recent events have shown, this does not provide a guaranteed pension.
“Saving into a pension is tax-efficient and should be a vital part of financial planning."IFAonline
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