Pre-retirees turning to equity release

Research released by Norwich Union suggests that equity release is growing in popularity among the pre-retirement generation.

A survey of more than 1,600 people aged 50-66 commissioned by the company found that people approaching retirement were twice as likely to consider using such a scheme as their retired counterparts. Almost 1 in 10 pre-retirees said they would probably take out an equity release product, compared to 1 in 20 people who were already retired.
 
Pre-retired people were also more positive about equity release products generally, with a third of pre-retired people saying that they might be a sensible option when older, compared to less than a quarter of retired individuals. A similar proportion said equity release could be a sensible use of assets.
 
Of those likely to take out an equity release product, additional income was the main reason for doing so.

Willie Mowatt, director of post retirement products for Norwich Union, said: "The research shows there is generational shift between pre-retired and retired people as more people in their 50s and early 60s are considering the product as a way of funding their retirement. It's also reassuring to know that 9 in 10 people questioned were aware of equity release schemes.
 
"This is a positive step forward for the equity release market as it shows it is shaking off its tarnished reputation and taking its rightful place among the retirement planning portfolio. Fewer and fewer people can now rely solely on pensions to fund their later years, so it stands to reason that retirees are increasingly looking into other options."