Baby boomers ‘use equity release to maintain living standards’

Posted 13/10/2009

Equity release schemes are increasingly being used by retirees to sustain their previous living standards, industry experts have revealed.

According to Safe Home Income Plans (Ship), baby boomers do not have the same attitude towards leaving an inheritance to their children as their parents did.

This has led to many choosing to use equity release schemes to generate wealth from their property.

Ship said this is because over-60s have become accustomed to a certain standard of living and do not wish to compromise on this throughout their retirement.

Andrea Rozario, director general of Ship, commented: “It’s only natural that people will think about how they can utilise their biggest asset, which is their bricks and mortar.”

She added that low interest rates have also fuelled interest in equity release in recent months, as these have reduced the income of those who depend on their savings.

The comments come after Key Retirement Solutions found that £214.2 million worth of equity was released in the third quarter of 2009.