The equity release provider says that current market conditions are ripe for the equity release market to double from last year’s levels over the next five years.
In 2007 retirees released £1.2bn through equity release and Norwich Union thinks the market will hit £2.4bn by 2013.
It predicts that the main drivers for growth will be the lack of retirement funding, the potential of high street lenders entering the market and the government emphasis on self-funding for retirement.
The company forecasts that these factors, alongside the current economic downturn, may result in more than 1.5% of home owners over 65 using equity release products.
Anthony Rafferty, head of marketing, post retirement at Norwich Union, says: “We have been in this market for ten years and seen many developments and changes.
“While the economic turmoil has been hugely detrimental to many parts of the UK economy, it may actually stimulate growth in the equity release market. Going forward, we see the market doubling over the next five years and truly coming into its own as a mainstream retirement planning and funding tool.”