Haves and Have-Nots both see the benefit of Equity Release
Research has shown two sharply contrasting pictures of older Britain. One the one hand there are the wealthy over 55s with houses valued at £300,000 or more who have made plans for their retirement. The majority of these wealthy over 55’s (57%) were planning on their private pension funding their retirement income, whilst 19% believed they had sufficient savings to use for retirement income.
However it’s interesting to note that amongst these wealthy over 55s some 33% are planning to use the equity in their home to help fund their retirement dreams. These plans are possible because over 55s collectively have £1.1 trillion of unmortgaged equity in their homes.
At the other end of the spectrum there are the Have-Not’s. Recent research conducted by the Equity Release Council showed that in the last month 31% of over 55s have experienced stress for financial reasons and 30% reported sleepless nights. 19% said they skipped meals whilst 9% said they suffered the cold due to unpaid bills.
This survey illustrates that there can be significant differences in the financial position of the over 55s. However, one thing many of them have in common – both the haves and the have nots – is the wealth that is tied up in their property.
Head of Equity Release Richard Espley comments:
“There will be very different motivations driving these two groups but in both situations releasing property equity has provided the financial solution – either delivering a desired retirement lifestyle or delivering sufficient funds for comfortable retirement living. With longer life expectancies it is likely that Equity Release will continue to grow in popularity as it is appealing to homeowners in a wide variety of financial circumstances.”
Content correct at time of publication