Equity release ‘can make up for pensions shortfall’

Posted 16/09/2009

Older people suffering from limited pension finance should consider equity release as an alternative funding method, according to a trade body.

Safe Home Income Plans (Ship) has stated that releasing equity held by pensioners could prove a viable solution to the UK’s current “pensions crisis”.

It highlighted figures which reveal that older people currently have access to £251 billion worth of housing wealth, with this figure set to grow to £359 billion by 2030.

With research from the firm suggesting that 67 per cent of retirees are looking to free up funds to “enjoy life” rather than saving up an inheritance, the body therefore called for greater consideration of equity release as an option.

This comes in response to a new report from the Pensions Policy Institute (PPI) which has highlighted the flexible role that equity release can play in funding individual retirement needs.

Andrea Rozario, director general of Ship, welcomes the findings and expressed hope that they will pave the way for “government, industry and consumer groups to work together to develop a workable proactive stance on housing equity”.