Third of Over 55s Will Use Equity Release
Published / Last Updated on 18/02/2022
Reasearch by Canada Life has revealed that 30% of property owners over 55 plan to use equity release to susbsidise their defined contribution/investment funds based pensions.
Suprisingly though, it is those will larger pension fund values that will utilise equity more than those with smaller pensions.
Just 27% of over 55s with pension funds below £200,000 would use equity release whereas 42% of those with pensions funds worth over £200,000 would consider equity release.
Higher earners also set the trend, with those earning over £50,000 per year also leaning towards equity release in retirement rather than those earning £20,000 per year.
Comment
Our best guess is that those wiith larger pension funds and larger salaries have greater amounts of equity in more valuable properties as well as other savings and investments and have a greater need for income. Those earning less than £20,000 or with smaller pension funds will likely live in smaler homes with less scope for equity release.