Equity Release Council comments on HSBC’s Future of Retirement Report

Nigel Waterson, Chairman of the Equity Release Council, comments:

“The UK stands out among the countries examined by HSBC’s report* for the strong desire among over-45s to retire within five years if circumstances allow, despite many fearing they will never fully retire. A comfortable retirement takes decades of hard work to realise. Increasingly, it also hinges on a broader approach to later life financial planning than was the case for past generations.

“For those who find they are asset rich but cash poor as they approach later life, the mantra of ‘save more now’ can only stretch so far. Years of high homeownership rates and rising house prices in the UK mean that many people’s housing wealth will be significantly exceeding their savings. Record equity release lending** shows more people are already using this to their advantage.

“A deficit of savings among soon-to-be retirees threatens to limit the horizon of this – and future – generations. It’s time to step back and give wider thought to how we fund our later years. People should carefully consider how housing wealth fits within their retirement and inheritance planning, and Government should support this by ensuring housing wealth is referenced within Pension Wise conversations.”

-ENDS-

* HSBC Retirement Report – 18% worldwide predict they’ll never be able to retire fully

** Equity Release Council quarterly lending figures, Q4 2015

Nigel Waterson is also available for further comment.

For further information, please contact:

• Andy Lane, Victoria Heslop or Sam Fisk at Instinctif Partners, on 020 7427 1400 or email [email protected]

About the Equity Release Council – www.equityreleasecouncil.com 

The Equity Release Council is the industry body for the equity release sector, which represents over 400 members including providers, qualified financial advisers, solicitors, surveyors and other industry professionals.

It works to ensure a safe equity release market for consumers, by operating rigorous Standards for the provision of advice and products which guarantee security of tenure and financial protections. 2016 marks the 25th anniversary since the first industry Standards were created for equity release in 1991. Since then, over 350,000 consumers have taken out an equity release plan from Council members, drawing on almost £17bn of housing wealth.

The Council also works with consumers, industry and policy makers to improve awareness and understanding of equity release and the potential for housing wealth to help solve many of the financial challenges facing people over the age of 55 across the UK.