Over 60s using assets to make most of retirement

A fifth (17%) of over 50s have little money left over to enjoy their retirement once they have paid off their debts and more than two fifths (41%) of retirees find clearing their debts difficult, highlighting how hard it is for many people to fund their dream retirement, according to a new study from Saga Equity Release. However, an increasing number of over 60s are now using equity release to unlock money so they can enjoy a better quality of life in retirement.

With more than one in ten (13%) over 55s retiring in debt, equity release is being used to clear these and alleviate financial worries, leaving people better off in real terms and free to get on with enjoying their retirement.  The research shows that two fifths (40%) of this age group have used equity release to clear borrowing, whilst a third (31%) use it to re-mortgage.

Over half of over 60s (52%) use equity release to carry out home improvements and transform their homes, while a third (34%) fund the holiday of a lifetime. A generous 20% give the money as a gift to family.

Andrew Goodsell, Executive Chairman, Saga Group, comments: "This study dispels the concept that equity release is the last resort for those who have nowhere else to turn.  We have found that people are increasingly likely to use equity release to clear debts, enabling them a better quality of life in retirement."

Saga understands the needs of its customers and believes it is best placed to offer solutions on how to fund their retirement - the majority of people taking out equity release with Saga opt for a product with a draw down facility, which enables them to withdraw money as and when they need it, meaning they do not incur interest charges until they are ready to spend the money. 

Taking out an equity release plan is not a decision that should be made without professional advice. The Saga Equity Release Advice Service will put prospective customers through to an equity release specialist, who will guide them through the process to ensure it is the right option for their circumstances.

Homeowners can access a free guide to Equity Release, ‘Enjoy the retirement you want by releasing cash from your home"', or use the online calculator to show the maximum amount they could potentially release from their property, by visiting saga.co.uk/equityrelease.