Using property wealth to bridge the confidence gap in retirement

Georgina Oxton, Divisional Sales Manager, LV= Equity Release

In our recent Wealth and Wellbeing Monitor we examined the UK population’s financial confidence, health and attitudes to spending, saving and wellbeing. The research highlights the retirement funding challenge many are facing and the declining level of confidence when it comes to preparing for their journey into later life as well as living comfortably. It’s clear to see the need for a multi-asset approach to financial planning, where property wealth is viewed alongside pension savings and other investments routes to support clients’ retirement ambitions. Our lifetime mortgage products are designed with great flexibility to offer features that match the emotional needs of clients looking to convert their property wealth into income or fund a long term goal. Figures from our Wealth and Wellbeing Monitor also demonstrate that more affluent consumers considering early retirement are twice as likely (20%) to use the value of their homes to fund retirement compared to the general population (10%). The global impact of the Covid-19 pandemic has also left many clients approaching retirement, feeling worried about their financial future, creating a noticeable confidence gap. Our research shows that 59% of non-retired UK adults are not confident that they’ll have saved enough for a comfortable retirement.

Disrupted later life plans for many

There is no doubt that the pandemic has disrupted the later life plans of thousands of people approaching retirement. Figures from our research conclude that 39% of the UK adults surveyed as part our Wealth and Wellbeing Monitor have had to change their retirement plans in some way due to Covid-19. Interestingly, 4% had to access their pension savings to supplement income or delay their early retirement plans.

Our own internal Lump Sum+ data shows that the average equity release client unlocks a capital of £100,000 from their property to help fund their later life plans. It is clear that property wealth has an important role to play and can help bridge the gap so older homeowners don’t have to downsize or sell their property to access funds to supplement their retirement income. Our Lifetime Mortgage Drawdown+ and Lifetime Mortgage Lump Sum+ are designed to suit clients’ short-and long-term needs, with flexible and transparent features.

< Go Back