Almost a quarter of female homeowners over the age of 55 have not contributed towards a private pension, compared to just 6 per cent of men, according to research from SunLife.
The survey further revealed that 22 per cent of the women over 55 claimed to be financially worse off than they had anticipated at this stage in life, significantly higher than the number of men which was recorded at 14 per cent.
When questioned on why they thought they were worse off, 70 per cent blamed a rising cost of living, while 47 per cent said it was due to low interest rates. In comparison, 55 per cent of men blamed an increased cost of living while 40 per cent cited low interest rates as the reason.
According to the firm’s research, on average, women over the age of 55 have resided in their homes for 24 years and witnessed their property value increase by around £111,000. As a result of this, SunLife suggested that, for those looking for a cash lump sum, unlocking some of the value in their homes via equity release rather than by moving, could offer the solution.
Commenting, SunLife equity release director Simon Stanney said: “Downsizing is an obvious choice when it comes to releasing cash from your property, but our survey shows that 61 per cent of women over 55 do not want to move, with more than half (56 per cent) saying ‘I love my home and I can’t see myself moving in my lifetime’”.
SunLife found that the primary reasons given by those reluctant to move were that it’s “too stressful”, that their property is “just as they want it”, they want to preserve their home for their children and there are “too many memories” tied up in their homes.
When quizzed on whether equity release is an option for them, one in 34 women over 55 claimed they already had, and over a quarter (28 per cent) said they would consider it, or are already considering it.
“While there will be many women who do not have a private pension but will benefit from their partners’, there will still be some women over 55 who simply do not have sufficient means to fund their retirement. However, these women may have a significant amount of equity in their homes. Many are reluctant to leave their homes, and that is when equity release can offer a solution,” Stanney concluded.
Recent Stories