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One in three over-50s plans to release equity in their home
September 28, 2011
A survey by LV= suggests that 31 per cent of over-50s plan to release equity from their property to help fund their retirement.
Nearly a third of over-50s (31 per cent) plan to use equity in their property to fund their retirement, new research suggests.
Retirement specialist LV= found that an extra half a million people have decided to consider this option since 2010, despite the fact that property values have fallen over the last three years.
Nearly two-fifths (36 per cent) of the 1,051 respondents, who were surveyed by Opinium Research on behalf of LV=, also said they would need to delay their retirement, while 16 per cent cannot bear to think about their retirement finances.
Vanessa Owen, head of equity release at LV=, said that many people who are nearing retirement feel "vulnerable".
"Combined with the fact that for many, their home is their biggest asset, releasing equity from a property is an option that an increasing number of over-50s are now considering," she confirmed.
Ms Owen advised anyone considering using their property to help fund their retirement to speak to a specialist financial adviser before selecting an equity release product.
Aviva's recent Real Retirement Report found that nine per cent of people who have made plans for financing their future care costs intend to rely on housing equity.
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