12% of homeowners in the UK aged 40 and above would consider releasing equity from their property to supplement retirement income, according to new research from Canada Life.

The average age they would consider doing so id currently 66.

Meanwhile, 12% of homeowners over the age of 40 plan on downsizing their property.

The research shows that younger homeowners are considering including equity release in their financial planning, more than their older counterparts. 15% of homeowners aged 40-64 are thinking about or planning to release equity from their property, compared to just 9% for those aged 65 and over.

Among those not planning to release equity from their property, their main reason for not doing so is driven by wanting their property wealth to go to their family (36%). Other reasons for homeowners not releasing equity include:

• Thinking equity release has a bad reputation (28%)
• Believing debt in retirement is bad (26%)
• Reading negative media coverage of equity release (20%)
• Selling outright and downsizing (16%)
• Believing it is too expensive (15%)

Alice Watson, head of marketing, insurance, at Canada Life, said: “There are many homeowners who are still unaware of the benefits of releasing equity from their properties, or are reluctant to consider it due to misunderstanding the product.

“For many homeowners, equity release can be an effective way to fund retirement, or simply boost income, while allowing them to stay in their forever homes and enjoy the retirement lifestyle they have wished for. As an industry, we must dispel these myths and highlight the valuable role property wealth can play as part of a holistic retirement plan.”