Over-65s to account for half of single-person households by 2022
The number of over-65s living alone will outnumber those aged under-65 for the first time within three years, according to the Equity Release Council, the trade body for the equity release sector.
It said there will be more than four million over-65s living alone by 2020, with this age group making up half of single-person households by 2022 as life expectancies and the rate of divorce in later life increases.
The number of over-65s living alone in the UK has already risen by 15% in the last decade from 3.4 million in 2008 to 3.9 million in 2018, reaching 48%.
Why so many?
The loss of a partner accounts for a substantial proportion of these single person-households, as well as a rise in divorce among couples in later life.
With more over-65s living alone, the Equity Release Council said it’s seeing more single equity release plans being taken out by customers to help meet their later life financial goals.
Jim Boyd, chief executive officer of the Equity Release Council, said:“There has been a dramatic increase in the number of single households lived in by pensioners.
“Living alone can be costly as sole incomes are expected to stretch just as far to cover many of the day-to-day household bills. Added to this pressure is the fact that many of the retirees of today are set to face record long retirements as life expectancies increase, putting even greater demand on their pension pots as they’re expected to stretch further.
“In response to these trends, we’re seeing an increasing number of homeowners that live alone turning to equity release to supplement retirement income and help meet both day-to-day and long-term financial priorities.”