What’s behind the growth in equity release?
The general trend for equity release over the past decade or so has been upwards – reaching record levels in 2022. One potential factor behind this growth could be the 2015 pension reforms, which gave people more freedom for using their pension savings.
The Equity Release Council reported in January 2023 that 2022 saw more customers than ever turning to equity release, with a 23% increase from 2021. A total of 93,421 people accessed their money with an equity plan, including nearly 50,000 doing so for the first time.
The market cooled in late 2022 and into 2023 due to caution about rising interest rates. But the long-term trend has clearly been for significant growth in this form of later life lending.
Some industry experts have suggested that the 2015 pension reforms have helped to fuel the growth of equity release – but is that correct? We take a look at this topic:
- What changes were made in the 2015 pension reforms?
- Are retirees emptying their pension pots too soon?
- Have changes to pension rules fuelled the rise of equity release?
- How can equity release help someone with a small pension?
- Is equity release right for you?
If you are looking at equity release due to a shortfall in your private pension, please call us on 0800 096 2215 or request a call back and we’ll arrange a no-obligation appointment with an adviser for you. Alternatively, check your eligibility and get an initial indication of how much tax-free cash you could unlock?