Around a third or 30 per cent of the over 55s with defined contribution pension plans intend to use the equity in their main home to fund their retirement income, according to Canada Life.
According to the research, over 55s with higher-value pension pots are more likely than those with lower-value pension pots to release equity from their homes as part of their retirement plans, 42 per cent compared to 27 per cent.
When it comes to their homes as part of their retirement income plans, 35 per cent of over 55s with higher salaries, £50,000 or more, are more inclined to contemplate releasing equity than 22 per cent of those earning less than £20,000 and 33 per cent of those earning between £20,000 and £50,000.
Canada Life head of marketing for insurance Alice Watson says: “Retirement journeys are becoming more complex. Fewer people are retiring on generous final salary pensions while more people are saving later in life or renting for longer. These demographic changes mean that more people are likely to turn to their property to help them support their retirement aspirations.
“Modern equity release products have the flexibility and accessibility which families and homeowners are looking for in order to enjoy their hard-earned retirements comfortably. However equity release is a lifelong financial decision so it is essential that people seek quality financial advice and talk through their decision with loved ones before agreeing to a product.”
