With inflationary fears and concerns with share prices retirees are seeing that their pension annuity and state pension are not enough; the 60-plus generation is taking to the bricks and mortar “lifeboat” that has propped up household finances all their lives.
Moneyfacts.co.uk reports that the number of equity release products for older people keen to spend some of the £730bn locked up in their homes has jumped nearly 50 per cent since Christmas.
The importance of equity release to an ageing UK population struggling with inadequate pensions has been heralded for a long time. Are we finally seeing the floodgates open?
The UK Equity Release Market Monitor from specialist financial advisor Key Retirement Solutions shows £390m released from bricks and mortar in the second quarter to June 30, in a total £680m for the year so far.
Unlike public sector workers on final salary pensions bankrolled by taxpayers, many private sector workers simply won’t have saved enough at 60 to rely on an oldstyle pension annuity to keep them comfortably in their dotage.
