In an address based at a seminar by the Pensions Policy Institute, Niki Cleal predicted that equity release was to grow significantly once more retirees were aware of the potential of unlocking the equity in their homes.
The idea was that whilst there remains a very large of equity tied up in the properties of over 55s, many were simply not aware of planning tools like equity release.
Ms Cleal stated:
As other, more traditional, methods of retirement finance have become more unstable, the demand is expected to increase. It might be that the ‘other forms of income retirement’ that Ms Cleal talks about are the ones that complement equity release, rather than the other way around.
If the current growth trend continues, it is expected that over 80% of retirees will shortly be owner-occupiers of homes, allowing for a much greater chance for more people to release equity from their homes.
It seems that recently, equity release is starting to catch people’s attention and it is being talked of more and more as a potentially integral part of retirement planning. Only this week, Reader’s Digest put out an article about how equity release can rescue pension prisoners.