Equity release can help retirees bridge the pension gap
Nobody wants to be scrimping on life’s essentials during retirement, but this is the financial reality facing many older adults.
Research has revealed that 38%1 of future retirees are heading for an income below the recommended minimum living standard based on their pensions and savings alone. This gap in wealth, however, could be plugged by capital tied up in their homes. Recent data estimates that UK homeowners aged 60-plus hold nearly £2.9 trillion2 of net housing wealth.
Equity release (link to blog #1?) could help people unlock this wealth before or during their retirement. For example, lifetime mortgages (link to blog #2?) can be taken out by people aged 55 and above while home reversion plans (link to blog #2?) are normally only available to those aged 60-plus.
Live independently for longer
As well as helping to cover daily living costs, equity release can help people clear outstanding debts or fund specific purchases. For example, a child or grandchild might need assistance with a deposit to buy their first home or a couple might want to book a cruise of a lifetime.
Equity release can also enable people to stay in their homes for longer. For example, an injection of capital could be used to fund modifications to make a property more accessible or practical, which could facilitate independent living for longer – a key priority for the UK’s ageing population.
When asked whether they preferred to stay in the property that they currently lived in, a survey3 found that 91% of adults aged 65 to 74 said they either agreed or strongly agreed; this rose to 95% for those aged 75-plus.
For some older adults, modifying their existing home might be the only way to delay a move into residential care. According to one report3, there is a lack of housing stock to meet the wellbeing needs of the UK’s ageing population, limiting their capacity to downsize to meet their healthcare and financial needs.
Unlock capital to cover care costs
To support independent living in later life, many people will need to pay for some form of care. It’s thought more than 800,000 people receive domiciliary care in the UK, with around a quarter self-funding these services4.
Equity release can help older adults absorb the care-related cost shocks that come in later life – whether it’s paying for assistance at home or funding a residential placement for a loved one.
Whatever the reason for considering equity release, it’s important to understand the ramifications for you, your family and your home. Find out how the specialist residential property team at Attwaters Solicitors can help you make an informed decision about equity release.
1 Scottish Widows, 2024
2 Savills, April 2025
3 Fairer Finance and Equity Release Council, May 2025
4 PolicyBee, January 2025
