Property wealth has delivered over £13bn in extra income via equity release products since 2015, new analysis by AJ Bell has revealed.

The analysis suggested that the ‘Baby Boomer’ generation are using the gains made on their properties to supplement retirement incomes, an option that may be “unlikely” for future generations.

A recent survey by Just Group found that one in four adults have, or are currently, using property to get extra funds, with further analysis by Defaqto showing equity release products offered at record low interest rates to “tempt” older savings.

Commenting on the analysis, AJ Bell senior analyst, Tom Selby, said: “For most people DC pensions are just one part of their retirement strategy, with many using a variety of assets to generate an income in their later years.

“Baby Boomers in particular are more likely to have significant wealth locked in their homes, and since April 2015 over £13bn of this has been accessed through equity release.

"To put that in context, for every £1 of money flexibly withdrawn from pensions in the last four and a half years, about 44p has been generated from property wealth using equity release.”

Selby added, however, that this is "likely to be a once-in-a-generation boom for equity release".

"Younger people are finding it increasingly difficult to get on the housing ladder, and even those that do are more likely to be lumbered with longer mortgage terms than their parents and grandparents," he continued.

“Furthermore, it is highly unlikely the rapid property price increases that burnished the retirement wealth of Baby Boomers will be repeated in the coming decades.

“Future retirees therefore need to factor in the possibility they don’t win the property lottery when building their savings plan as, in all likelihood, their house will not be their pension.”

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