Equity release possibilities as one in three over 50s look for retirement help
New research by insurance provider, LV= Liverpool Victoria, suggests almost a third of over 50’s (31 per cent, or 2 million people) are considering releasing equity from their home to help fund retirement.
This figure has increased by half a million (8 per cent) year-on-year.
LV= have dubbed this growing population the HIPpies (Home is Pension), a name that encapsulates the current market. As inflation rises, interest rates stay low and the global stock markets remains more volatile than the Manchester City bench, the over 50s are looking to their retirement with trepidation rather than excitement.
36 per cent of over 50s think they will need to delay their retirement and remain in the workplace while 16 per cent are opting for the head-buried-in-the-sand approach and don’t even want to think about their retirement finances.
This is, naturally, prompting many to look for additional income sources.
Even despite the decline in property values, there has been an incline of property owners planning to use their home to fund their retirement, one way or another. Downsizing remains a primary option with 52 per cent of over 50s considering this. In a similar vein, 20 per cent of over 50s would be prepared to move to a less expensive area while 19 per cent believe equity release would be a solution they would be prepared to take.
Many people consider equity release more favourably to downsizing as it allows them to remain in their current home. This is a big plus for many as the idea of selling the family home is heart wrenching.
Anyone considering about an equity release plan should seek both professional financial and legal advice from industry experts. The Goldsmith Williams’ GWLifetime team can provide that specialised legal information. To find out more, call the team on 0845 373 3737.
Content correct at time of publication