Equity Release

Once a distress purchase for people struggling to make ends meet in retirement, equity release is rapidly becoming a popular choice at all stages of retirement for a number of different purposes.

For some it still fulfils an important role in keeping their heads above water, but increasingly it is viewed in much the same way as other savings and investments: an asset that can be used to maintain a certain lifestyle at any stage of retirement. 

Lifetime Mortgage purchase by age:

Age 65-74

Proportion of total lump sum lifetime mortgages: 48.7%

Proportion of total drawdown lifetime mortgages: 57.5%

Percentage of all lifetime mortgages sold: 54.5%

Main objectives:
o Maintain lifestyle
o Meet day-to-day expenses
o Repaying debt

Age 75-84

Proportion of total lump sum lifetime mortgages: 11.8%

Proportion of total drawdown lifetime mortgages: 24.4%

Percentage of all lifetime mortgages sold: 20.2%

Main objectives:
o Improve lifestyle
o Meet day-to-day expenses
o Estate planning

Age 85+

Proportion of total lump sum lifetime mortgages: 3.6%

Proportion of total drawdown lifetime mortgages: 4.2%

Percentage of all lifetime mortgages sold: 4.1%

Main objectives:
o Meet day-to-day expenses
o Long term care
o Estate planning