Around 12 per cent of UK homeowners are considering equity release as a means to supplement their retirement income, according to new research.
The study by retirement specialists Canada Life found that the average age of those considering releasing equity from their home was around 66 years old – two years before state retirement age for many who were surveyed.
The recent changes to pension legislation will mean that many people in their 40s will see their state pension age rise to 68 between 2044 and 2046.
The survey by Canada Life concentrated on this group, to get a better picture of how they would respond to this change.
Although many of those questioned focused on using equity release to supplement pension income, there were many other reasons to release money from a property, including:
- Clearing an existing mortgage (45 per cent)
- Making home improvements (34 per cent)
- Consolidating unsecured debt (20 per cent)
- Establishing an emergency fund (15 per cent).
The latest study is backed up by recent data released by retirement specialist Key Group that revealed the number of equity release products available hit a 15-year high in 2021.