Low UK savings, increased longevity, soaring house prices: can Equity Release be the solution?

23rd June 2016

A recent survey shows that UK families have savings of an average of only £3,150. This varies across the country - from £10,000 in London to £1,833 in Humberside and Yorkshire. And 50% of adults have no savings at all.

At the same time, people are living longer, with almost 18% of the UK population over 65. By 2050, this is expected to rise to roughly 24%.

This creates two financial problems - the older generation will have to make their savings stretch further, and the younger generation will have to wait a lot longer before they inherit whatever is left. This financial conundrum therefore centres on older, asset-rich but savings-poor individuals, together with their children and grandchildren, who perhaps still have student debt and who cannot get onto the housing ladder.

Equity release may hold the solution

Whilst the UK population is poor at saving, its residential property is something that continues to increase in value. Thirty years ago, the average UK house price was £35,647; now it is £197,044. I feel that we should all consider what part equity release can play in retirement planning, given that, for most people, your home represents a huge percentage of your overall wealth.

Why not get in touch and see how we can help?

Equity release is the answer to so many financial questions. If you would like to know more about it, and see if it could be the right move for you, please book an appointment or request a call-back