Equity Release Could Boost Dwindling Savings
Over 40% of people in Britain are saving too little or nothing at all, leaving many potentially struggling in their retirement years but an equity release scheme could help ease the pressure. These findings were part of ABI’s (Association of British Insurers) Savings Manifesto released last week (13 October 2009).
Commenting at a joint ABI and IPPR conference, Stephen Haddrill, ABI’s Director General, said: “ABI research this year shows that over 40% of people are either saving far too little, or nothing at all, for their retirement, while the vast majority of the UK’s population has little or no protection in place to help them cope with unemployment or other unexpected financial shocks.”
Increased Equity Release Lending Could Help
An equity release plan could supplement savings and/or income to ensure that retirement can be enjoyed to the full. Recent Key Retirement Solutions research suggested that equity release lending and the number of plans released has increased in the third quarter of the year.
This encouraging upward curve could suggest that confidence is returning to the market as more homeowners seek to enjoy their retirement.
Better Savings and Equity Release Could Improve Retirement
In ABI’s manifesto they suggest that more should be done to encourage savings. They also released details about a “streamlined” financial advice service and felt that pre-retirement access to pension plans could help.
Dan Baines, Marketing Director at Age Partnership added, “A great many people now entering their retirement years own a home whose value far outweighs the savings that they have put aside for retirement.
“For these people, equity release should certainly be looked at as a means of improving the quality of what should be a relaxing and enjoyable time in their lives.”
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