Pension shortfall to see a rise in equity release?

Posted on 12 August 2011

The shortfall of pensions may lead to more older people considering equity release when thinking of ways to pay for care, new research has indicated.

A survey by equity release experts LV= found that 98 per cent of independent financial advisors (IFAs) believe the industry will experience growth in the future.

Some 48 per cent of respondents said that a shortfall in pension provision would be behind this expansion, while 30 per cent said it would be caused by a desire to pay off existing debt.

Meanwhile, one in ten IFAs said it would be used by those looking for ways to pay for care and home improvements.

Vanessa Owen, head of equity release at LV=, said: "For many people, their home is their greatest asset so it is understandable that more and more people will want, or need, to access the equity in their home."

In other news, one in four Brits believe the UK will experience a double dip recession, while 35 per cent believe there is no safe haven for savings and other investments.

Posted by Natalie Edwards

 

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