Age UK Enterprises has claimed that 66% of those aged 60 and over own their homes outright yet of these 34% of all those aged 60+ have only the state pension as their main source of income.
The organisation, which is the commercial services arm of charity Age UK, suggests that some of those who are asset rich and cash poor, an equity release plan could provide an additional income which could help make their retirement more comfortable – yet 91% of homeowners aged over 60 say that they would not consider the option.
Whilst not suitable for all, equity release could provide a useful source of income for some. Research found that of those homeowners in later life (60+) who would not consider releasing income from their home, 27% want to leave their property to a relative. A further 25% don’t think equity release is appropriate for them while 17% did not trust equity release products.
Age UK has developed an Equity Release Advice Service specifically designed to combat the concerns of customers in later life. The service allows customers to pass on the value of their home to family, if they wish and customers can release sums as low as £500. Also included is thorough, regulated advice to ensure that people only consider purchasing equity release if it is appropriate for them.
In the last year, 7% of those respondents aged over 60 had tried or considered ways of generating additional money to live on with 37% of these having gained work – with, 13% taking on freelance work such as gardening or being a handyman.
Simon Gray, head of Just Retirement Solutions, said: “We partnered with Age UK Enterprises so that we could combine their in depth knowledge of those in later life with our advice and product expertise. The result is an Equity Release Service that has been designed specifically to answer customer concerns and enable more people to use this product to boost their finances.””
