Future growth for equity release expected as savers fail to put away for a rainy day
New research from Santander Savings suggest there will be a strong need for options such as equity release in the coming years as 1 in 5 UK adults confess to having no savings.
According to the figures, 11 million UK adults (22 per cent) do not have any savings.
Those who are putting money away are also falling short of previous amounts; the average monthly deposit into savings has dropped 7 per cent over the course of the last year.
It appears females are most at risk of smaller saving pots, putting aside £45 less each month (£540 a year) than their male counterparts.
There is a glimmer of hope for savings though as 23 per cent, rising to 43 per cent when focusing solely on 18 – 34 year olds, of people are planning to increase their monthly payments in the next few months. However, with household budgets continuing to be squeezed as the cost of living creeps ever higher, intention may never result in action.
This decreasing ability to save could see more and more people relying on products such as equity release in the future.
Equity release allows UK homeowners, aged 55 – 95, to utilise the capital in their property whilst retaining the right to live there.
Content correct at time of publication