Writing for UK website Money Matters, Chris Prior (pictured), Sales and Distribution manager at Bridgewater Equity Release points to enormous capital reserves that many seniors fail to utilise.

Research conducted for villages.com.au (The McCrindle Baynes village Census Report 2011) found the same thing happens here in Australia.

While  69% of those surveyed had released capital from a three or four bedroom family home when they moved to a retirement village, a considerable number of older Australians were not realising the benefit of their biggest asset.

“The latest Pensioner Property Equity Index, published by Key Retirement Solutions, shows retired homeowners have total property wealth owned outright of more than £752bn” wrote Prior.

“Many older homeowners remain unaware they could be utilising this hard-earned equity to make their retirements more comfortable.”

By selling the family home, downsizing and using leftover equity to make retirement more comfortable, buying into a retirement villages present a viable option for those who feel they don’t have enough equity to retire on.

As Prior points out, soft or even flat housing markets don’t necessarily have a negative impact on that decision to move.

“Notwithstanding quarterly or annual increases or decreases, most older homeowners will be consoled by the fact their properties have still massively increased in value since they were first purchased more than two decades – or longer – ago.”