It’s good news for those nearing retirement, as more people are using Equity Release schemes to get access to their home’s value. This means there’s more choice and a wider range of options available for people like you!
Younger People are Turning to Equity Release
According to the latest figures from Pure Retirement, the average age of new customers taking out a lifetime mortgage is now 68. This is a trend that has been steadily growing, with more people under 70 now taking advantage of these plans.
- In fact, 59% of all new customers are under 70, compared to just 43% at the same time last year!
This shift means that more younger people are choosing to release equity from their homes to help with things like:
- Boosting their retirement income
- Paying off debts
- Helping their loved ones
- Making home improvements
Drawdown Plans Are Becoming More Popular
Another interesting trend is the growing popularity of drawdown plans.
- In the last quarter, 51% of new customers chose a drawdown plan, compared to just 41% a year ago.
With a drawdown plan, you can access your money as and when you need it, rather than taking out a lump sum all at once.
This flexibility can be very useful, as it allows you to manage your money carefully and make sure it lasts as long as possible.
Women are Leading the Way
More and more women are also choosing to use Equity Release.
- The proportion of single life applicants who are women has reached 70%, compared to 64% a year ago.
This is a clear sign that women are increasingly aware of the benefits of equity release and are taking control of their financial future.
Lump Sum vs. Drawdown Plans – What’s The Difference?
- Lump Sum: With this option, you receive a one-off payment that you can spend as you wish.
- Drawdown: This lets you access your money in smaller amounts, as and when you need it. This is great if you’re not sure how much money you will need in retirement.
How People Use Their Equity Release Money
- People who choose a lump sum tend to use it for essential things like paying off debts, making home improvements, or helping their loved ones.
- Those who choose a drawdown plan are more likely to use their money for things like holidays and other leisure activities.
Important Information for You
It’s vital to get professional financial advice before you decide to take out an equity release plan. A qualified financial advisor can help you understand the different options available, the potential risks and benefits, and whether this is the right decision for you.