Annuity confusion means more equity release?

Posted in General

28th April 2010

More than four in ten (42 per cent) Britons have no idea what an annuity is, which could encourage more to consider equity release.

New research carried out by Sun Life Financial of Canada reveals that nearly a quarter (23 per cent) think an annuity is a savings pot, whereas another quarter (23 per cent) have no idea what one is.

Mark Stopard of Sun Life notes that people are advised to find out what kind of plan is best for them and that "there is a wide range of retirement income products available".

One such product which may prove easier to use is an equity release scheme. These allow people to extract the value of their home whilst still living there.

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