Most DC Savers Don't Expect a Comfortable Retirement — Here's How Property Could Help

The retirement savings gap

A TPT survey of more than 2,500 DC pension savers, published in May 2026, paints a stark picture of retirement expectations in the UK. Only 30% of DC savers expect to have enough saved for a comfortable retirement. Fewer than a third — just 29% — believe their savings will last throughout retirement. Only 2 in 5 believe their savings will cover their basic needs.

These findings sit alongside a longer-term warning from the Pension Commission: an estimated 15 million people in the UK are under-saving for retirement. Auto-enrolment, while transformative in getting people saving, has set contribution levels that are inadequate for most people's retirement expectations. The minimum total contribution of 8% of qualifying earnings is widely acknowledged to be insufficient to deliver the retirement income most people are planning for.

The implication is that a large section of the workforce heading towards retirement has a gap between what they expect and what their pension pot will actually deliver. For many, that gap will be significant.

Property as the missing piece

UK homeowners aged 55 and over collectively hold housing equity running into trillions of pounds. For most people in this age group, their home is their largest single asset — often worth considerably more than their combined pension savings.

For many homeowners, pension savings alone will not deliver the retirement they planned. But combined with property wealth, the picture looks different. A homeowner who owns their property outright, or has significant equity after their mortgage, is sitting on a substantial financial resource that can be structured to generate retirement income or provide capital for specific needs.

Equity release is not a pension substitute. It does not generate a regular income in the same way that an annuity or drawdown pension does. But it is a tool that can complement pension income — funding a gap in the early years of retirement, clearing debts that were eating into income, or releasing capital for a specific purpose that would otherwise require selling assets at the wrong time.

How equity release works

There are two main equity release products available to UK homeowners aged 55 and over:

• Lifetime mortgage: You retain full ownership of your home and borrow against its value. Interest rolls up and is added to the outstanding balance. The loan is repaid when the property is sold — typically after death or on a move into long-term care. No mandatory monthly repayments are required. A no-negative-equity guarantee means the outstanding balance can never exceed the property's sale value. You have the right to remain in your property for life. Many products offer a drawdown facility — you can take money as needed rather than as a lump sum, paying interest only on what has been drawn.
• Home reversion plan: You sell a share of your property to a reversion provider in exchange for a lump sum or regular payments. You retain the right to live in the property rent-free for life. When the property is eventually sold, the provider receives its share of the proceeds.
• Retirement interest-only (RIO) mortgage: You pay the interest on the loan each month. The capital is repaid when the property is sold. This is suitable for homeowners who can service interest payments and want to avoid the roll-up effect of a lifetime mortgage.

The right product depends on your circumstances, income, property value, and what you want to achieve. FCA-regulated advice from a qualified specialist is essential before proceeding.

Is equity release right for you?

Equity release is regulated by the Financial Conduct Authority. Firms that are members of the Equity Release Council must meet additional standards, including providing a no-negative-equity guarantee and giving borrowers the right to remain in their home for life.

Equity release is not right for everyone. There are important considerations that must be understood before proceeding:

• Interest roll-up on a lifetime mortgage will reduce the equity remaining in your estate over time. The longer the loan runs, the more this effect compounds.
• Equity release could affect your entitlement to means-tested benefits, including pension credit and council tax reduction.
• If leaving an inheritance is important to you, the impact on your estate must be carefully modelled before any decision is made.
• Early repayment charges can apply if circumstances change and you wish to repay the loan before the end of your life or before moving into care.

Always seek regulated financial advice before making any decision about equity release or later-life lending. There is no obligation at any stage of the advice process. A Verity Home adviser can help you understand whether equity release is appropriate for your specific situation, model the long-term impact on your estate, and compare available products.

Learn more: What is equity release?, Lifetime mortgage calculator, Is equity release right for me?