Research has revealed the age of retirees turning to equity release has fallen significantly for the first time, prompting commentators to suggest more people are retiring with insufficient pension provision, reports Mortgage Solutions (21/1/08).
Results from Key Retirement Soluntions' annual Equity Release Market Monitor showed the average age for pensioners seeking equity release dropped from just under 70 in 2006 to 68 last year.
Speaking at its equity release roundtable event, Dean Mirfin, business development director at KRS, said the drop in the average age was more significant than it looked at first glance. He added: "We expect the average age seeking equity release to creep lower and lower."
Stuart Wilson, managing partner of Equity Advice, agreed the average age was dropping, suggesting it could have "ramifications" for the market in the long term. He said: "If you look at the generation taking out equity release today, many have been with their employers for 30-odd years and have final salary pension schemes to rely on. The generation that will come into the equity release market in 20 years' time no longer has that."
Wilson added: "There will be a huge issue with pensions for the future generation."
Andrew Dixon, marketing and sales manager at Bridgewater Equity Release, said people were now retiring with less capital available to them, adding: "This is one of the main reasons why equity release is going from strength to strength."
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