Three in 10 over-55s (30%) who have private pension savings are planning to release equity from their home as part of their retirement income funding, according to new research from Canada Life.

The findings indicated that over-55s with higher value pensions – those above a value of £200,000 – are more likely (42%) than those with lower value pension pots (27%) to release equity from their home as part of their retirement plans.

Canada Life’s research was based on a study among 506 over-55s in the UK. When thinking about their homes as part of retirement income plans, 35% of respondents on higher incomes – which included those above £50,000 plus – are more likely to consider releasing equity as part of their income plans.

This compared to 22% of those earning less than £20,000, and 33% of those earning between £20,000 and £50,000.

Canada Life head of marketing for insurance, Alice Watson, said that retirement journeys are “becoming more complex”.

“Fewer people are retiring on generous final salary pensions while more people are saving later in life or renting for longer. These demographic changes mean that more people are likely to turn to their property to help them support their retirement aspirations.

“Modern equity release products have the flexibility and accessibility which families and homeowners are looking for in order to enjoy their hard-earned retirements comfortably. However equity release is a lifelong financial decision so it is essential that people seek quality financial advice and talk through their decision with loved ones before agreeing to a product.”

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