50% of consumers aged 55-74 would expect any property they own to be taken into consideration by their adviser when planning their retirement finances, according to new research from LV=.

The LV= Wealth and Wellbeing Monitor – a quarterly survey 4,000+ UK consumers – found that 11% (5.8m) UK adults are planning to use the value of their home to help fund retirement.

The survey asked UK homeowners in what circumstances they would consider getting a lifetime mortgage. 45% of UK homeowners  would consider using equity release/ a lifetime mortgage for at least one of a variety of reasons. These reasons include:

• Paying for home improvements for medical/ mobility reasons (17%)
• Paying for a care worker (16%)
• Increasing retirement income (15%)
• Home repairs (15%)
• Helping children and grandchildren financially (12%)

Clive Bolton, managing director of savings and retirement at LV=, said: “The equity release market has grown over the past decade as consumers understand that it is a mainstream retirement planning option for people who want to unlock the value in their home to enjoy the retirement they want.

“The growth in the market over the past 10 years has been driven by a combination of factors: house prices have risen strongly, interest rates on lifetime mortgages have fallen sharply and equity release products have become a lot more flexible. Modern plans now allow policyholders to make voluntary or partial repayments with no early repayment charge for helping to boost the popularity of the sector.

“I expect that the equity release market will grow strongly in the second half of the year as lockdown ends and life begins to return to normal. Retirees are likely to use equity release to pay for new experiences after lockdown and a year of missing out, while those people who have been forced to take early retirement because of redundancy will consider equity release to clear debts.”