13 stats that show equity release popularity is rising

As the value of pensions falls, property wealth rises to new heights.

Although pensioners’ income is on the rise, an over-reliance on private pensions could increasingly lead to a retirement income shortfall in the future. Pensioners will see the value of their pensions fall due to the shift from generous final salary schemes to defined contribution schemes. As people are living longer, millions of workers will face severe reductions in income when they retire.

This, alongside considerable growth in house prices, means property will increasingly become many pensioners’ most valuable asset. Total homeowner equity in England reached £2.6 trillion in 2016. Of this, £1.8 trillion belonged to households with a homeowner aged 55 or over. This figure is set to double by 2036.

Unlocking housing wealth is already becoming an increasingly popular option. A Financial Conduct Authority report last week said, as retiree debt levels rise, demand for equity release products could increase.

David Burrowes is chairman of Equity Release Council.

Although pensioners’ income is on the rise, an over-reliance on private pensions could increasingly lead to a retirement income shortfall in the future. Pensioners will see the value of their pensions fall due to the shift from generous final salary schemes to defined contribution schemes. As people are living longer, millions of workers will face severe reductions in income when they retire.

This, alongside considerable growth in house prices, means property will increasingly become many pensioners’ most valuable asset. Total homeowner equity in England reached £2.6 trillion in 2016. Of this, £1.8 trillion belonged to households with a homeowner aged 55 or over. This figure is set to double by 2036.

Unlocking housing wealth is already becoming an increasingly popular option. A Financial Conduct Authority report last week said, as retiree debt levels rise, demand for equity release products could increase.

David Burrowes is chairman of Equity Release Council.

Average gross income of married and cohabiting pensioner couples (2014/15 – 2016/17)

Source: Department for Work and Pensions Pensioners’ Income Series 16/17

Income is £ per week, 2016/17 prices

Average gross income of married and cohabiting pensioner couples (2014/15 – 2016/17)

Source: Department for Work and Pensions Pensioners’ Income Series 16/17

Income is £ per week, 2016/17 prices

Average gross income of married and cohabiting pensioner couples (2014/15 – 2016/17)

Source: Department for Work and Pensions Pensioners’ Income Series 16/17

Income is £ per week, 2016/17 prices

Average gross income of married and cohabiting pensioner couples (2014/15 – 2016/17)

Source: Department for Work and Pensions Pensioners’ Income Series 16/17

Income is £ per week, 2016/17 prices

Average gross income of married and cohabiting pensioner couples (2014/15 – 2016/17)

Source: Department for Work and Pensions Pensioners’ Income Series 16/17

Income is £ per week, 2016/17 prices

Average gross income of married and cohabiting pensioner couples (2014/15 – 2016/17)

Source: Department for Work and Pensions Pensioners’ Income Series 16/17

Income is £ per week, 2016/17 prices

Average gross income of married and cohabiting pensioner couples (2014/15 – 2016/17)

Source: Department for Work and Pensions Pensioners’ Income Series 16/17

Income is £ per week, 2016/17 prices

Average gross income of married and cohabiting pensioner couples (2014/15 – 2016/17)

Source: Department for Work and Pensions Pensioners’ Income Series 16/17

Income is £ per week, 2016/17 prices

Data crunch: Pensioners increasingly turning to equity

Source: Equity Release Council

Data crunch: Pensioners increasingly turning to equity

Source: Equity Release Council

Data crunch: Pensioners increasingly turning to equity

Source: Equity Release Council

Data crunch: Pensioners increasingly turning to equity

Source: Equity Release Council

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