Nigel Waterson comments on latest pensioner income data

Nigel Waterson, Chairman of the Equity Release Council comments on the latest pensioner income data from the Office of National Statistics:

“Today’s figures highlight the budget black hole facing pensioners, whose average gross weekly income of £477 is still lower than it was two years ago. The reliance on benefits for 44% of gross income, and the lack of personal pension and earnings, is clear evidence of the need for alternative income sources in retirement. The figures paint an especially bleak picture when the costs of living and household essentials continue to rise.

“It is little wonder that more people are using equity release to give them extra spending power and compensate for limited incomes. Two out of three equity release products sold allow the gradual drawdown of funds, so customers can withdraw money as and when they need additional income – limiting the build-up of interest in the process.

“With rising house prices increasing the wealth at their disposal, equity release can prove an invaluable source of income to offer security and comfort in later life without the burden and stress of moving home. With the ability to protect an inheritance at the same time, equity release should be considered and discussed as a fundamental part of the retirement planning process.”