Equity Release Council comments on the early indicators of the ONS Wealth and Assets Survey
Jim Boyd, CEO of the Equity Release Council comments on today’s report:
“Investing in property has been cited as the second most popular option to save for retirement, following paying into an employer pension scheme. This illustrates the crucial role that housing wealth must play in the retirement income landscape, both today and in years to come. It is therefore vital that homeowners have a choice of products and the right advice and guidance to make the most of their wealth and assets in later life.
“Releasing housing equity opens up new possibilities, from passing down wealth to the next generation as a ‘living inheritance’ to meeting social care costs and supplementing retirement incomes. Property is often a person’s single largest asset and has become a vital piece of the retirement funding jigsaw¹.
“Bringing property into play can help avoid an overreliance on private pensions as household savings experience an unprecedented squeeze². With the shift from generous final salary pensions to defined contribution schemes, millions of workers will find their income reduced when they retire and will need new solutions to improve their outlook.”
– Ends –
¹ Homeowners aged 55+ released £971m of housing wealth in Q2 2018 via Equity Release Council members [source: Equity Release Council, July 2018)
² Households’ savings ratio in 2017 reached the lowest point since records began in 1963 source
For further information, please contact:
Kia Mclean / 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 industry body for the equity release sector, which represents over 500 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 marked the 25th anniversary since the first industry Standards were created for equity release in 1991. Since then, nearly 370,000 people have taken out an equity release plan from a Council member, drawing on nearly £18bn 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.