Equity release can fill the retirement income void
A person’s income drops by over a third when they reach retirement, according to latest figures from enhanced annuity provider, Partnership.
The analysis has revealed that the average retiree will see their income cut by 38.95% when they stop working. Londoners will experience the largest difference between their working and retirement income (48.1%) while those Wales will see the smallest reduction (33.7%).
The void between employment and retirement income
As a result people who plan to rely predominantly on their pension throughout retirement are likely to see their lifestyle change considerably.
However with news that retirees collectively own £768.95 billion worth of property, equity release could fill this void as Richard Espley, Head of Equity Release at Goldsmith Williams, explains:
“Even with fewer outgoings the substantial difference between employment and retirement income will mean the majority of retirees will need to significantly tighten their belts. But while many retirees are cash-poor latest figures have again revealed the sizeable funds they have tied up in their property.
“Equity release allows cash-strapped homeowners to free up some of the equity in their property whilst retaining the right to live there, an option which could more than fill the void left after employment.”
Content correct at time of publication