Older homeowners ‘can fund retirement with equity release’

Posted 15/09/2009

Older property owners have been called upon to consider the potential role that equity release can play in financing their retirement plans.

The Pensions Policy Institute has advised that utilising housing wealth can prove a potentially versatile finance option for an increasing number of homeowners.

It highlighted statistics which suggest that by 2030, as many as 5.2 million households will be in possession of enough housing wealth to make equity release a worthwhile option.

Keith Haggart, Prudential’s director of lifetime mortgages, therefore recommended that older people take advantage of the option, suggesting that it can provide a more flexible means of finance than traditional fixed income methods.

He said: “The real benefit of equity release is it allows customers to supplement their retirement income to match their individual needs.”

This comes after Key Retirement Solution last week suggested that releasing equity can provide funds for retirees to accomplish a number of goals, such as refurbishing their homes or paying their bills.