Equity Release Council comments on HMRC’s Flexible Payments from Pensions data

31 July 2018 | Equity Release Council

Equity Release Council comments on HMRC’s Flexible Payments from Pensions data 

Jim Boyd, CEO of the Equity Release Council, comments on the latest data for activity in Q2 2018:

“Flexible pension payments have risen significantly over the last quarter, but while ‘pension freedoms’ are proving popular, the financial challenges facing our ageing population are too great to rely on a single source of funds to provide the solution.

“We have entered a new era of retirement planning since the decline of final salary pensions, where a range of options are needed to improve people’s prospects of achieving financial comfort. New sources of income such as housing wealth have entered the mainstream of financial planning among over-55s. For every £1 of pension savings withdrawn in the last 12 months, 50p of housing wealth was unlocked – up from 40p a year earlier¹.

“Such demand is likely to continue rising as more people look to housing wealth to supplement their savings and help meet pressing social needs, including mounting social care costs and giving help to younger generations. It is important that people are aware of all their options when deciding how best to support themselves and their families in later life – taking into account their pensions, savings, investments, property and other assets.”

– ENDS –

References:

¹ Comparing flexible pension payments with equity release activity, Q2 2016-Q2 2018:

 

 

Housing wealth withdrawals (via equity release lending)

Flexible payments from pensions

Housing wealth unlocked for every £1 of pension savings withdrawn

Q3 2016 - Q2 2017

£2,639 m

£6,550 m

£0.40

Q3 2017 - Q2 2018

£3,503 m

£7,060 m

£0.50

 

 

Source: HMRC flexible payments from pensions series / Equity Release Council member lending figures

For further information, please contact:

● Hannah Beard / Amy Boekstein at Instinctif Partners, on 020 7427 2020 or email [email protected]

 

About the Equity Release Council – www.equityreleasecouncil.com 

The Equity Release Council is the representative trade body for the equity release sector with over 220 member firms and 710 individuals registered, including providers, regulated financial advisers, solicitors, surveyors and other professionals.

It leads a consumer-focused UK based equity release market by setting authoritative standards and safeguards for the trusted provision of advice and products. Since 1991, nearly 420,000 homeowners have accessed over £22bn of housing wealth via Council members to support their finances.

The Council also works with government, voluntary and public sectors, and regulatory, consumer and professional bodies to inform and influence debate about the use of housing wealth in later life and retirement planning.