More than eight out of 10 High Net Worth clients (84%) expect to use housing wealth to fund at least part of their retirement, according to a new survey.

On average, HNW investors says they plan to fund half (49%) of their retirement costs by using housing wealth.

One in 50 say they will be relying on housing wealth entirely to fund 100% of their retirement costs, rising to one in 14 (7%) of the wealthiest respondents

Wealth management and Financial Planning firm Saltus surveyed the attitudes of over 1,000 people in the UK with investable assets of over £250,000.

Saltus called the reliance by HNW investors on property wealth "a risky strategy."

It found that 84% of respondents said they would be using housing wealth to fund at least part of their retirement, with 70% planning to fund at least 25% of the cost.

Younger people were the most likely to rely on property to fund their later years, with just 7% of 25-34s saying they do not plan to use any housing wealth to fund their retirement. 

The wealthiest respondents were most likely to rely on housing wealth entirely. 

Of those with assets of £3m or more in wealth, one in 14 (7%) say their housing wealth will be the only funding for their retirement. Those with £3m+ plan to fund most (54%) of their retirement using housing wealth.

Despite over-65s being the least likely to intend to use housing wealth to fund their retirement (19%), of those that do, a third (33%) expect it to cover 100% of the costs.

The regions where respondents plan to use their housing wealth to fund at least half of their retirement costs are the East of England (53%), the North East (54%), the East Midlands (50%) and the South West. Respondents from Northern Ireland plan to use housing wealth to fund just 39% of their retirement on average, with 29% saying they will not rely on it all. 

Michael Stimpson, partner at Saltus, said: “The second Saltus Wealth Index Report shows that the majority of people intend to fund their retirement through some degree of housing wealth. While the temptation to fill gaps in pension pots this way is understandable, it is a fundamentally risky strategy. It depends on residential property continuing to retain its value or even rising in value, which is far from a certainty.

“There really is no substitute for careful Financial Planning. The best retirement plans are ones where people have been clear about their aspirations and have worked towards their goals in a careful and methodical way in the context of other demands on their spending and saving. It may not be an easy win, but it is the best way to retire in comfort and with peace of mind after a lifetime of hard work.”

• Research was carried out between 28 February and 15 March by market research firm Censuswide which surveyed  1,000 UK respondents who have £250k+ investable assets about how they felt about the UK economy, their own wealth and what matters most to them personally.