Palo Alto, CA – Dec. 11, 2024 – As homeowners aged 50 and older approach retirement, many face a growing set of financial challenges that threaten to derail their plans. According to new research from Point, a leading home equity investment platform, nearly 30% of these homeowners report they are unable to retire on time—or fear they may never retire at all – due to the rising cost of living and insufficient savings.
Historically, homeownership has been a cornerstone of retirement planning, offering both financial stability and a tangible asset to rely on in later years. However, Point’s survey reveals a clear disconnect. While many homeowners view their homes as a significant part of their retirement planning, many are not fully leveraging their home equity to help ensure financial security in retirement.
“It’s surprising at a time when home equity has reached historic highs, so many homeowners feel unprepared for retirement,” said Eddie Lim, CEO and co-founder of Point. “For many, their home is their most valuable asset, yet they might not realize the full potential of the equity they have built over the years. Home equity could be the key to bridging the gap between their savings and retirement goals, providing a vital lifeline for a more secure and comfortable future.”
Key findings:
- Retirement confidence declines: Nearly 30% of working homeowners aged 50 and older are not confident in their ability to retire on time. Among those with less than $10,000 in retirement savings, 88% expressed doubts about retiring as planned.
- Financial pressures delaying retirement: Rising housing costs, high interest rates, inflation, and insufficient savings are pushing many older homeowners to delay retirement or return to work post-retirement.
- Home equity may be a lifeline: Despite challenges in retirement savings, home equity remains a vital asset for many older Americans. Nearly half (49%) of homeowners over 50 report having more than $250,000 in home equity, with 65% expressing interest in using their equity to retire sooner if given the option.
- Home equity and retirement confidence: The amount of home equity significantly impacts retirement plans. More than 30% of those with less than $50,000 in equity say they don’t believe they will be able to retire, while only a fraction of those (6%) with $500,000 or more in equity feel the same.
For more details on the research, the full report can be found here.
No income? No problem. Get a home equity solution that works for more people.
Prequalify in 60 seconds with no need for perfect credit.
Show me my offer
Thank you for subscribing!
.webp)
