Future retirees become reliant on equity release as retirement looks “uncomfortable”
A staggering three quarters of over 50s believe they have failed to contribute enough to their pensions in order to afford a comfortable retirement, according to a recent survey by Friends Life.
Speaking to over 50s still in work, the pension provider discovered that 75 per cent feel they did not contribute enough to their pension in their 20s, 30s and 40s. However, over a third conceded that they could not have made additional payments during those periods to have significantly changed their current predicament.
It is now likely that many of these future retirees will need to release equity from their property during retirement.
Despite regularly contributing to a pension, 62 per cent have never increased these payment amounts either in line with the cost of living or their own salary growth. Women are most culpable; 68% failing to proactively increase payments while over half of men (53%) find themselves guilty.
Of those who have upped their contributions 56 per cent have only increased payments by up to 5 per cent.
Many retirees now automatically include property within their retirement planning. Equity release allows a homeowner to release funds from their property whilst retaining the right to live there.
Content correct at time of publication