We spend a lot of time talking to clients about pensions, investments and retirement income. But how often do we talk about the role their home could play in helping them achieve their future goals?
For many advisers, conversations about housing wealth don't tend to happen until a client reaches retirement or faces a specific financial need. Perhaps they want to supplement their income, help children or grandchildren financially, repay borrowing, or cover the cost of care. By that point, we're often looking for a solution to an immediate need.
But what if we're having the conversation too late?
If a client's home is likely to be one of their biggest assets, shouldn't it form part of the planning conversation much earlier?
Around 65% of households in England are owner occupiers, making property ownership one of the most common forms of wealth accumulation in the UK. At the same time, the average UK house price sits at around £272,800. For many people, a significant proportion of their wealth is tied up in their home, yet it's often the piece of the puzzle that receives the least attention when retirement planning discussions begin.
That's an interesting contrast when median private pension wealth for those aged 55-64 is around £137,800 and average ISA holdings are approximately £40,945. Whilst every client's circumstances are different, for many people their property could represent a greater source of wealth than their pension and savings combined.
It becomes even more relevant when we consider what retirement might look like. The latest Retirement Living Standards suggest that a comfortable retirement requires annual spending of around £45,400 for a single person and £62,700 for a couple.
For some clients, pensions and savings will comfortably support those goals. For others, there may be a gap between the retirement they want and the resources available to fund it. That's why housing wealth deserves a place in the conversation, not because equity release or downsizing is necessarily the answer, but because a client's home is an asset and, like any other asset, they should understand the role it could potentially play in helping them achieve their objectives.
Good advice starts with understanding what matters to the client and exploring the full range of available options. That might involve downsizing, extending a mortgage term, making use of existing assets, considering family support arrangements, exploring retirement interest-only lending or, where appropriate, later life lending solutions. For some clients, equity release may be suitable. For others, a completely different route may better meet their needs and objectives.
From a Consumer Duty perspective, this is where advisers can add real value. The focus should be on helping clients understand their choices, the implications of those choices and how different options align with their goals, rather than steering them towards a particular solution. By broadening the conversation beyond products and focusing on client outcomes, advisers can help ensure decisions are informed, appropriate and aligned with the client's individual circumstances.
After all, clients don't think in product silos. They don't separate their property wealth from their pension wealth or view mortgage advice and retirement planning as completely different conversations. They simply want confidence that they can achieve their goals, maintain financial security and make informed decisions about their future.
The most effective later life planning conversations rarely begin with a product recommendation. They begin with discussions around goals, aspirations, family, lifestyle and long-term plans. When we introduce conversations around housing wealth earlier, clients have more time to consider their options, explore alternatives and understand how their property could support future needs if circumstances change. Most importantly, they're able to make decisions before those decisions become urgent.
Those who can bring these conversations together are likely to be best placed to help clients navigate increasingly complex financial decisions and deliver good long-term outcomes.
And that's a conversation worth having long before retirement arrives!
Need support with your firm’s retirement planning or CRP conversations? We would love to help – book a chat with our friendly team today.
Sources
Home ownership statistics (approximately 65% of households in England are owner occupiers): GOV.UK Ethnicity Facts & Figures and English Housing Survey.
Average UK house price (£272,800): Zoopla House Price Index.
Median private pension wealth age 55-64 (£137,800): Office for National Statistics, Pension Wealth: Wealth in Great Britain.
Average ISA holdings (£40,945): HMRC Annual Savings Statistics 2024.
Retirement Living Standards (£45,400 single person / £62,700 couple for a comfortable retirement): Retirement Living Standards 2025.
Fran is a business quality assessor at Verve with a keen eye for both file reviews and bespoke template design, currently working towards her advanced diploma.
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