New survey shows rising number of homeowners open to using equity release to supplement State Pension
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An increasing number of UK homeowners say they would consider equity release as part of their retirement planning, according to the latest Wealth and Wellbeing Research from provider LV=.
The survey revealed that 10% of adults fully plan to use the value of their property to help fund life after work. Over a quarter (27%) of respondents say they would consider using equity release as part of their financial planning for the future, up from 25% in 2023.
The findings also reveal that reliance on the State Pension appears to be declining, with the percentage of adults expecting to depend on it dropping from 20% in 2023 to 17%. LV= notes: “If this number continues to decrease, equity release may offer an alternative solution to funding retirement.”
The report also highlighted differences between men and women in how they view equity release. According to the findings: “Women seem to value flexibility, with 35% prioritising the ability to transfer their mortgage to a new property and 37% focusing on protecting inheritance for loved ones. By contrast, men show a preference for choosing a well-known and trusted provider with a good reputation, 48%, and high product ratings such as Moneyfacts or Defaqto, 31%.”
Patrick Oldham, equity release proposition director at LV=, said: “Lifetime mortgages are becoming a cornerstone of retirement planning for many, and we understand the vital role financial advisers play when it comes to ensuring customers have a clear understanding of the market and their options. With trusted advice, individuals can confidently explore how equity release could support their long-term financial wellbeing.”
Data from the Equity Release Council highlights growth in the market. Its October 2024 quarterly report revealed that the number of new equity release plans increased by 2% in the third quarter of 2024, with 5,370 plans agreed. This marked the first time since the September 2022 mini-Budget that the market experienced two consecutive quarters of growth.
Additionally, homeowners aged 55+ withdrew £615 million in property wealth between July and September 2024—a 6% increase from the second quarter of the year.
LV=’s survey, conducted in September 2024, gathered insights from 4,000 UK adults, selected in a way that reflects the demographic makeup of the population.
Source:
1 in 4 homeowners planning to use equity release to fund retirement: Rising number of homeowners explore equity release to fund retirement. Mortgage Finance Gazette. Accessed 27 January 2025.