According to Economic Lifestyle and TNS, homeowners released around £1.5 billion of equity from their homes last year to boost their pensions, and more would consider doing so if the process were less complicated.
The survey found that over 100,000 retired homeowners released £4 billion in equity last year, and 39% of that total went towards supplementing pensions. Around 904,000 over 65 intend to release equity from their homes over the next three years.
The research revealed that nearly 300,000 retired people would use the equity in their properties, if a more straightforward equity release scheme with more options were available.
Our view
It is a reality that many now face in retirement. Huge property values and little or no income. Equity release may become the 'investment' of necessity rather than choice in the next few years.