For over 50s home really is where the heart is

Following successive interest rate cuts and the value of investments and pensions being eroded, people living from their savings will be finding it increasingly difficult to maintain their normal standards of living. According to Saga, the over 50s experts, for many the solution could be to use the equity in their homes to help fund their dreams of a full and active retirement.

However research by Saga Equity Release service shows that downsizing is not necessarily the first choice as 89% of over 50s believe where they live is more than just bricks and mortar, with more than two thirds (68%) having lived in their current home for over ten years and half (48%) saying it is where they want to grown old.

When asked to identify what it was about their house that made it a home three quarters say it is a house in a safe neighbourhood (74%) or a house that is decorated to their own personal taste (70%) and another two thirds (65%) cited a community feeling and knowing the neighbours as the key factors.

These figures also support Saga's view that the over 50s would ideally like to remain in their own homes. Research on behalf of Saga even explodes the myth that people are concerned about leaving their house behind as an inheritance for their families, less than 1 in 10 (9%) say they would not take out an equity release product because they believe the home should be for children to inherit. Equity release could therefore be a possible solution to those looking for an increased income or access to capital whilst remaining in their homes. The study, carried out through the Saga/Populus survey, also revealed that many are considering using the equity to enhance the quality of their retirement regardless of any expectations of an inheritance from younger relatives.

Alex Edmans, Business Development Manager at Saga commented " Saga's research highlights that over 50s do not just view their properties as a house but as a home. With a lifetime of fond memories from within their family homes they would not want to be forced to move for financial reasons. This presents a very real need for people to seek expert financial advice to review how best to stay in their home but still access the equity that they require from it".

"Equity release plans can work very well for many in these circumstances as they will allow you to release the capital required and give you the security that you can remain in your home for the rest of your life".

Homeowners can access a free guide to Equity Release, ‘Affording the Life You Would Like in Retirement', or use the online calculator to show the maximum amount they could potentially release from their property, by visiting saga.co.uk/equityrelease