Homeowners Turn to Equity Release Ahead of Retirement in Jan 2022

Equity Release: Could It Be the Next Big Retirement Trend?

Contributors: Nicola Date, Katherine Read. Reviewed by Francis Hui

It Seems That More and More People Are Turning to Equity Release Options Ahead of Retirement. This Is Because They Need the Funds Now, and Don't Want to Wait Until They Retire. In This Post, We'll Explore the Reasons Why Many People Turn to Equity Release as an Option for Funding Their Lifestyle in Retirement.

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More and More Homeowners Turn to Equity Release Ahead of Retirement: Here’s Why

Every 12 minutes, someone in the UK unlocks equity tied into their home!

Equity release is more popular than ever and you’re probably wondering why? If you aren’t up-to-date, you could end up missing a life-altering opportunity.

We’ll help you discover:

  • Why equity release is growing in popularity.
  • If this growth is sustainable?
  • Reasons why equity release is used by so many.

We’ve analysed all the data and found some remarkable solutions. Could equity release change your life? Find out now!

Breaking News About Equity Release Mortgage Popularity

The number of people turning to equity release ahead of retirement is on the rise!

During these shaky economic times, more and more people are looking for a way to fund their retirement, but don’t want to feel forced to sell their homes or worry about how to pay off debts before they retire.

Homeowners recognise the importance of being financially independent during their retirement years.

This is where equity release comes into play.

Equity release offers an easy solution, as it lets you keep living in your home until they pass away, while securing funds for future years without selling up.

Retire Early With Equity Release

In these economic times, retirement is a pipe dream for many. Equity release is a superb option to help make this dream a reality. These products are often considered by many homeowners, years before their actual retirement date, giving them peace of mind that they’ll have money in their golden years.

In a March study of 1,020 UK homeowners, Canada Life discovered that 12% planned to release equity as an addition to their retirement income. 66 was the average age of individuals who said they would contemplate1 releasing equity, 2 years before they would be eligible for retirement.

retire early

The majority of those surveyed by Canada Life were in their 40s, they’ll therefore reach pension age around 2044 and 2046. Due to recent legislation shifts, this will likely be around the age of 68.

A full basic state pension currently pays £179.60 per week, or £9,350 per year, according to the most recent government figures.

Due to the loss of final salary pensions and still inadequate2 savings rates, many more people will look for ways to supplement their retirement income.

equity release

Reasons Why People Use Equity Release

The increase in the state pension age3 has merely shifted the goalposts for many people who had intended to retire at the age of 66. Therefore, people may look into home financing to help support the additional 2 years.

As consumers take a more holistic perspective of their retirement, the average age of an equity release customer has been gradually falling. Home equity is no longer a last-resort commodity, and it can be a valuable addition to retirement planning, alongside pensions.

While clearing an existing mortgage4, completing property upgrades, consolidating unsecured debt, and establishing an emergency fund were all examples of equity release uses, there were many more.

equity release

Demand for Equity Release

The equity release sector suffered a hit in the 1980s and 1990s as a result of a series of scandals that put consumers in massive debt. However, in recent years, the demand for equity release options has rapidly increased, resulting in a flood of goods on the market.

The Equity Release Council, which was established in the 1990s to help the struggling industry get back on its feet, is working to legitimise the sector and its product suite by serving as a recognised seal of approval on suppliers’ businesses.

Common Questions

Does Equity Release Affect Your Pension?

What's the Best Age To Take Equity Release?

In Conclusion

There are many people that have been looking for a way to create some financial stability in the later years of their lives. The number of people turning to equity release ahead of retirement is increasing, and it’s not hard to understand why.

Equity release combined with other income sources can help provide an improved quality of life during retirement without needing any extra work. It’s an easy and secure investment with no risk or commissions if you remain in your home until you pass away or move into long-term care.


  • www.ftadviser.com/retirement-income/2021/07/08/homeowners-turn-to-equity-release-ahead-of-retirement

Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.

rachel w

Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
john lawson profile.jpg

Written by
John Lawson
Founder SovereignBoss

John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.

Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
kath icon

Katherine Read
Consumer Affairs Writer

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.

Nicola Date
Writer & Journalist

Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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