- Just 7% of homeowners presented with equity release as an option during retirement planning conversations
- Legacy misconceptions remain - four in five not aware of ‘No Negative Equity Guarantee’
Despite property representing a major source of household wealth, equity release is largely still absent from retirement planning discussions, new research1 from Canada Life shows.
Among the sample of homeowners2 who have spoken to a financial adviser about their retirement plans, just 7% were presented with equity release as an option unprompted. Only one in twenty (6%) asked about it, and more than three quarters (76%) reported not discussing equity release with their financial adviser at all.
Including later life lending in financial planning conversations presents a valuable opportunity for homeowners to unlock greater financial flexibility in retirement. The research showed less than half (48%) of homeowners are confident that their savings and income will last through retirement. With property accounting for 40% of total household wealth in the UK 3, exploring ways to access this wealth will be an important part of ensuring financial security in later life.
Canada Life’s findings show that while nearly three quarters (73%) of homeowners are familiar with equity release, understanding and knowledge of the product remains limited, and legacy misconceptions of later life lending persist.
Over two thirds (67%) did not know that you could still pass your home onto your children after you have released equity, and 63% did not know whether you could move house after doing so.
Four in five (82%) were not aware of the No Negative Equity Guarantee, with 42% incorrectly believing you could end up owing more than your house is worth, and 40% not knowing if this was true or false. The No Negative Equity Guarantee is an important feature of equity release products, ensuring that when the property is sold, neither the customer nor their estate will ever owe more than the value of the home. This provides reassurance and protection for both borrowers and their families.
Pete Maddern, Managing Director, Retirement at Canada Life said:
“As people live longer and many individuals find their pension savings falling short, unlocking money tied up in property to supplement pension income is likely to become an increasingly important aspect of retirement planning.
“Furthermore, with unspent pensions set to be included in inheritance tax calculations from 2027, more individuals will be seeking flexible estate planning strategies. Equity release can play a key role in enabling wealth to be passed to the next generation and in mitigating potential inheritance tax liabilities.
“It’s encouraging to see the progress the FCA has made in recent months to explore how the later life lending sector and advice framework should evolve. While equity release will not be right for everyone, these developments have the potential to improve consumer understanding and awareness of later life lending, and to enable advisers to have more holistic conservations with their clients about whether equity release could help them achieve their later life and retirement goals.”
ENDS
Notes to editors
- Survey conducted by Opinium among a nat rep sample of 2000 UK adults aged 40+ between 7-10th October 2025.
- Homeowners aged 40+ who own their home outright or with a mortgage. Excludes shared ownership
- ONS data: Household total wealth in Great Britain: April 2020 to March 2022
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About Canada Life:
Canada Life is part of a group of companies controlled by Great-West Lifeco Inc., a Canadian headquartered, international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses. Through its subsidiary companies, Great-West Lifeco operates in Canada, the United States, and Europe. Great-West Lifeco trades on the Toronto Stock Exchange under the ticker symbol GWO and is a member of the Power Corporation group of companies.
Canada Life Limited began operations in the United Kingdom (UK) in 1903 and provides UK individuals and businesses with a range of retirement, investment, insurance and wealth solutions. Canada Life offers individual annuities, pension de-risking solutions, home finance, estate planning and investment options, and workplace protection products.
Canada Life Limited (no.973271) is registered in England and Wales, authorised by the Prudential Regulation Authority, and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Stonehaven UK Limited (no.05487702), trading as Canada Life, is registered in England and Wales and is authorised and regulated by the Financial Conduct Authority. Canada Life International Limited (no.033178C) and CLI Institutional Limited (no.108017C) are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority. Canada Life International Assurance (Ireland) DAC (no. 440141) and Canada Life International Assurance (Ireland) DAC are authorised and regulated by the Central Bank of Ireland.
Canada Life Asset Management is the brand for investment management activities undertaken by Canada Life Asset Management Limited (no.3846821), Canada Life Limited and Canada Life European Real Estate Limited (no.03846823). Canada Life Asset Management Limited is authorised and regulated by the Financial Conduct Authority.
Please note that while Canada Life Limited and Canada Life Asset Management Limited are regulated as stated above, property management and the provision of commercial mortgages are not regulated activities.