Equity Release Boom in 2029
Research from retirement specialists Sovereign Reversions predicts there will be an equity release boom in 2029.
The firm predict that by 2029 there will be 15.1m people over the age of 65 – a 50% increase on the numbers as it stands today. They predict more pensioners than ever will turn to equity release to enjoy a good standard of living and a more comfortable retirement.
Using the Office of National Statistics data on pensioner households and housing tenure and Department of Communities and Local Government (DCLG) data on house prices in its study, Sovereign go on to predict that pensioners in 2029 will be sitting on housing equity worth £1.5trn – an increase of 88% on the current level of £800bn.
Chief executive of Sovereign Reversions, Graeme Marshall, said that for many, the value of their home will be the most obvious source of funding to support their income to enable them to set up a more comfortable retirement.
He said: “There will be no alternative to ensure pensioners can enjoy a reasonable living standard in their old age.”
With the official retirement age rising, it may well force people to work longer before being entitled to a state pension, and releasing cash from their home will be many pensioner’s answer. Sovereign Reversions predicts that the already rising profile and importance of equity release plans will grow even further by 2029, providing big business for equity release providers and brokers alike.
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