More wealthy Americans are seeing their homes as a key component of retirement savings.
Researchers at Phoenix Companies Inc., Hartford, have published that finding in a summary of results from a recent survey of 1,700 U.S. residents with at least $1 million in net worth.
About 14% of those survey participants said they see the equity in their primary residence as a major part of their retirement savings, up from 10% in 2008 and 12% in 2007.
The finding appears to suggest a greater role for home equity products such as reverse mortgages in high-net-worth individuals’ retirement plans, says Walter Zultowski, a senior vice president at Phoenix.
Usually, home equity-linked products have been used mainly by less affluent households, Zultowski says. The decline in the economy may be forcing more affluent Americans to think of their homes as a potential source of cash for maintaining their post-retirement standard of living, he says.