According to a survey carried out by insurance provider Partnership, two-fifths of those surveyed felt that property had a role to play in their later life finances, with nearly a quarter expecting to use the equity in their property if they had to.

Roughly one in ten was actively looking to make use of the value of their home and 8% planned to use this asset to pay for care.

Partnership managing director Ged Hosty said:

“This research also suggests that most people between the ages of 45 and 65 have not given serious thought as to what their net worth is – something that should definitely be done in the run up to retirement.

“When planning their later life finances, it is vital that not only do people consider all their assets when they retire but they also decide how they wish to use them.”

Anyone planning to use equity release should speak to a financial adviser first, he added.

According to the survey, most over-45s are “wildly optimistic” about their assets, with 89% saying their property will be worth less than 50% of the total assets they hold. Given that the average property is worth £245,495, this suggests that they expect their assets to be worth a minimum of £490,990 when they retire.

People in the south west (15%) were most realistic about the prospect of their home making up more than half of their assets, while those in the north (3%) were less so.

The research also suggested that with the typical pension pot being worth £32,300, people have underestimated the proportion of their net worth in residential property and the role it may play in their later life finances.

It found that 28% of over-45s said that their property is their home and not an asset they plan to use in retirement and 26% saw their house as an asset that they could leave their children or other relatives.