- Around a third (30%) of the over 55s with defined contribution pensions plan to release equity from their homes to help fund retirement
- Those with higher value pensions (more than £200,000) are more likely to release equity (42%) than those with pensions valued at less than £200,000 (27%)
- The over 55s on higher incomes (£50,000 plus) are more likely to release equity as part of their retirement planning than those on lower incomes
New research 1 by Canada Life reveals around a third (30%) of the over 55s with private pension savings are planning to release equity from their main home as part of their retirement income funding.
The over 55s with higher value pensions are more likely than those with lower value pension pots to release equity from their home as part of their retirement plans (42% compared to 27%).
When thinking about their homes as part of retirement income plans, 35% of the over 55s on higher incomes (£50,000 plus) are more likely to consider releasing equity as part of their income plans, compared to 22% of those earning less than £20,000 and 33% of those earning between £20,000 and £50,000.
Alice Watson, head of marketing for insurance at Canada Life said:
“Retirement journeys are becoming more complex. Fewer people are retiring on generous final salary pensions while more people are saving later in life or renting for longer. These demographic changes mean that more people are likely to turn to their property to help them support their retirement aspirations.
“Modern equity release products have the flexibility and accessibility which families and homeowners are looking for in order to enjoy their hard-earned retirements comfortably. However equity release is a lifelong financial decision so it is essential that people seek quality financial advice and talk through their decision with loved ones before agreeing to a product.”
- Source and methodology: 506 UK adults aged 55+ with a defined contribution pension, who are not yet taking an income. Fieldwork by Opinium between the 15th – 26th October 2021.