Equity release is largely still absent from retirement planning discussions despite property representing a major source of household wealth, Canada Life has warned.

Among a sample of homeowners who had spoken to a financial adviser about their retirement plans, Canada Life’s research found that just 7% were presented with equity release as an option unprompted.

The findings also indicated that just 6% asked about it, while more than three quarters (76%) reported not discussing equity release with their financial adviser at all.

Canada Life suggested that including later life lending in financial planning conversations presents a “valuable opportunity” for homeowners to unlock greater financial flexibility in retirement. The group’s research showed that less than half (48%) of homeowners are confident that their savings and income will last through retirement.

With property accounting for 40% of total household wealth in the UK, the firm also said that exploring ways to access this wealth will be an important part of ensuring financial security in later life.

“As people live longer and many individuals find their pension savings falling short, unlocking money tied up in property to supplement pension income is likely to become an increasingly important aspect of retirement planning,” said managing director, retirement at Canada Life, Pete Maddern.

“Furthermore, with unspent pensions set to be included in inheritance tax calculations from 2027, more individuals will be seeking flexible estate planning strategies. Equity release can play a key role in enabling wealth to be passed to the next generation and in mitigating potential inheritance tax liabilities.”

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