Education essential as retirees need equity release
800,000 people believe they will need to release equity from their homes in order to sustain a decent standard of living in retirement, according to latest research.
Understood to be the largest piece of consumer research to date, equity release provider, Just Retirement, has found the average retiree believes they need an income of £17,000 a year for a good quality of life.
Retirees and those approaching retirement are also aware that the income they will get from annuities and the state is likely to fall considerably short of this and are open to opportunities such as equity release to bridge that gap.
However, the 32-page report “The Role of Housing Equity in Retirement Planning”, not only highlights the need for equity release but also the requirement for consumer education about the product. Nine in 10 couldn’t name an equity release provider while four in 10 didn’t know where to go to for help and advice.
60 per cent of retirees also wanted reassurances that equity release products are regulated, prompting calls for the government to work with the industry to ensure people are equipped with a enough understanding to feel comfortable and confident about using such a product as part of their retirement planning.
Content correct at time of publication