More homeowners are considering turning to lifetime mortgages to help fund their retirement, according to data from LV=.
Around 10% of adults plan to use the value of their home to help fund life after work, and more specifically, 27% of those surveyed are considering equity release as part of their future financial planning, up from 25% in 2023, says the financial firm’s latest Wealth and Wellbeing Research quarterly survey.
It adds: “Reliance on the state pension is steadily declining, with the percentage of adults planning to depend on it falling from 20% to 17% in the past year.
“If this number continues to decrease, equity release may offer an alternative solution to funding retirement.”
The report also highlights gender differences in the way these products are viewed.
It says: “Women seem to value flexibility, with 35% prioritising the ability to transfer their mortgage to a new property and 37% focusing on protecting inheritance for loved ones.
“By contrast, men show a preference for choosing a well-known and trusted provider with a good reputation, 48%, and high product ratings such as Moneyfacts or Defaqto, 31%.”
LV= equity release proposition director Patrick Oldham adds: “Lifetime mortgages are becoming a cornerstone of retirement planning for many, and we understand the vital role financial advisers play when it comes to ensuring customers have a clear understanding of the market and their options.
“With trusted advice, individuals can confidently explore how equity release could support their long-term financial wellbeing.”