Due to the current economic turmoil and its effect on retirees' savings, the equity release market will probably see a boost over the next few years, Norwich Union claims.
Combined with the endemic lack of retirement funding, the potential entry into the market by high street banks and building societies, and the Government emphasis on 'self funding' for retirement, the market is predicted to grow to £2.4bn by 2013.
This would be double the amount released in 2007 (£1.2bn) and would see more than 1.5 per cent of UK over-65 homeowners using these products each year to increase their income and enjoy a better standard of living in retirement.
The provider has estimated that 115,617 consumers are due to purchase 70,500 plans in 2013, which is a clear indication that as the population ages and the retirement funding gap grows over the next five years, equity release will become increasingly important.
Anthony Rafferty, head of marketing for post retirement at Norwich Union, said: "While the economic turmoil has been hugely detrimental to many parts of the UK economy, it may actually stimulate growth in the equity release market.
"Going forward, we see the market doubling over the next five years and truly coming into its own as a mainstream retirement planning and funding tool."
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