More help should be focused on over 50s trying to organise their finances for retirement, according to a report commissioned by Just Retirement.
The study questioned more than 1,000 homeowners aged over 55 and found that many are unaware of the details surrounding equity release plans and safeguards. Homeowners are more likely to consider professional advice on equity release in the run-up to retirement.
Just Retirement’s group director of external affairs and customer insight Stephen Lowe says: “The run-up to retirement is a time when people look at their finances carefully and start planning how best to use or pass on their wealth. Increasingly, for baby boomers who have benefited from rising house prices, that involves looking at how best to use the wealth tied up in their homes.
“For many of today’s retirees, their property value will account for a significant – and for some with small pensions – the most significant proportion of their overall wealth. It is available to be used or passed on at some point so it needs to be factored into the retirement planning conversation, ideally from an early stage.”
The percentage of respondents who cited professional advisors as the preferred source of information was 19 per cent but this figure jumps to 39 per cent if they are a year away from retirement. For those one to two years away from retirement, it was 36 per cent.