The FCA’s latest discussion paper addresses later-life lending and highlights why property wealth is becoming an essential part of retirement planning. Products like lifetime mortgages are increasingly helping people bridge income gaps as they approach retirement. Thanks to the FNZ-Nokkel partnership, advisers have smarter tools to weave property insights into their advice, making it more personalised and meaningful. The regulator’s focus on responsible innovation also shines a light on the huge economic potential unlocked by tapping into housing wealth.
Key Takeaways
Property wealth is now larger than pensions with some £2.6tn housing stock owned by retirees.
By 2040, over half of UK households are expected to place reliance on housing wealth to fund retirement.
The FCA has therefore identified property wealth as a critical, yet an often overlooked, component of retirement planning.
Many retirees are asset-rich but cash-poor, highlighting the need for flexible, responsible financial solutions - including later life lending.
Nokkel’s market leading property solution, which is integrated into FNZ’s global wealth management platform, supports the delivery of future-ready, consumer-focused financial planning that includes property wealth.
Last year, we called for bold innovation in property wealth; a call now echoed by the FCA’s latest discussion paper. Additionally, data from the Equity Release Council shows a 32% rise in lifetime mortgages over just one year, as more homeowners tap into their housing wealth to fund their retirement plans and support future generations. Many are asset-rich but cash-poor, highlighting the urgent need for smart, responsible solutions in how we approach retirement and the untapped potential of housing wealth.
Consider the scale of this opportunity: the FCA estimates UK housing stock at staggering £9 trillion. Yet despite this immense reservoir of wealth, many retirees face significant income shortfalls, estimated at around £48 billion annually by Fairer Finance. Homeowners aged 65 and over hold around £2.6 trillion in net property wealth, most of which remains largely underutilized.
While pensions and investment advice have embraced digital innovation, property - the single largest component of household wealth - still sits siloed and disconnected from retirement planning. Bridging this gap is no longer just desirable; It’s essential.
Unlocking Confidence in Retirement
Many retirees face uncertainty or fear about income shortfalls despite holding substantial property wealth. Whether your retirement savings are falling short or clients want to tap into the wealth they’ve built over their working lives, later-life lending products, like lifetime mortgages and retirement interest-only loans, provide a valuable way to unlock valuable funds in retirement. This flexibility supports everything from covering day-to-day living costs through to home improvements, family gifting, or long-term care.
Alastair Conway, Group Head of UK, FNZ, said:
For many people in retirement, their home is their most valuable asset. It’s increasingly important to ensure that housing wealth sits alongside pensions and other savings as a key part of later-life financial planning, which the Fairer Finance report highlights and FCA recognise in their paper.
The FCA anticipates meaningful growth in later-life lending, driven by demographic shifts and wealth composition - property wealth has now overtaken pensions in relative terms. But beyond this, the FCA is actively encouraging the industry to embrace responsible innovation. Not only in lending products, but also through advice and digital tools that make accessing these solutions easier. It’s a call to better meet the evolving needs of older borrowers with flexible, tailored guidance, and smarter, data-driven approaches.
Through the FNZ-Nokkel partnership, we empower advisers with tech that models lifetime mortgage scenarios, assesses risk in real time and delivers personalised, holistic advice reflecting the full scope of a clients wealth. Together, we’re helping to embed property insights directly into adviser workflows, paving the way for future-ready, consumer-focused planning.
Retirement Has a Property Problem
As the composition of holistic wealth shifts, property is transforming from a passive asset to an active financial tool that can help people live their best retirement with the wealth they’ve accumulated. With so much value locked in housing, it’s logical that we need to look beyond conventional assets and consider the role of property wealth, whether that's downsizing or considering how lifetime mortgages and other later-life lending products can help retirees live comfortably and securely by unlocking housing wealth.
For many, the costs of retirement are unlikely to be met by savings alone....There is around £9.1 trillion in UK housing stock.
FCA, June 2025
Retirement is no longer a fixed endpoint; it’s a phase of life that requires ongoing access to credit and liquidity. Fairer Finance recommends that the FCA should build more explicit consideration of housing wealth into the FCA rulebook, ensuring advisers assess how housing wealth can support retirement funding. By providing advisers with the technology and insights to embed property directly into retirement planning conversations, we’re helping to transform how retirement wealth is understood and managed.
Regulation that sparks Innovation
Responsible innovation is a shared imperative for the financial services industry. Advisers who embrace tools that can blend property wealth into traditional planning will become essential guides to their clients’ long-term financial well being.
By 2040, 51% of UK households may rely on housing wealth to fund their retirement. The potential could unlock £23 billion annually and could contribute an estimated £21 billion to the UK economy, according to Fairer Finance.
These numbers underscore a systemic need for change. Financial advisers and institutions should embrace innovative solutions that embed property wealth directly into client conversations, helping to close the gap between isolated advice and true holistic financial planning.
As the FCA CEO highlights: “Early consideration of how and when someone could access their housing wealth is increasingly important when helping consumers navigate their financial lives.”
What’s Next?
The FCA’s discussion paper is clearing the path for a roadmap that firmly embeds housing wealth into retirement planning, and supports innovation that empowers advisers and consumers alike. Property wealth is a critical component of any retirement plan, and with inheritance tax becoming increasingly topical, integrating property into comprehensive financial planning is essential.
As later-life lending becomes increasingly mainstream, the potential for innovation and growth is enormous. Armed with robust digital tools, advisers can confidently guide clients toward a retirement that’s not only secure but enriched by property wealth.
Roland Whyte, CEO Nokkel, said:
The FCA’s spotlight on later-life lending highlights the growing importance of property wealth in retirement planning. Through FNZ and Nokkel, advisers can integrate real-time property insights into client conversations, empowering fully informed decisions - including how to unlock housing wealth.
Together, FNZ and Nokkel are building a smarter, more connected advice ecosystem; one that integrates property into wealth planning without adding complexity. Through scenario modelling, real-time data feeds, and seamless integrations, we’re enabling advisers to deliver advice that is compliant and future-proofed, and above all, human.