“This Interim Report highlights the very real pensions crisis the UK is facing with an estimated 12 million working people not saving enough for their retirement. We believe that current pension provision is inadequate and that improving this situation should be a firm goal for all providers and the government to work towards. Unfortunately, despite this goal, many people are going to reach retirement with inadequate savings and pension provision – 23% of pensioners have an average of only £1,500 in savings1.
“It is certain therefore that equity release will become an increasing part of many peoples retirement strategy - £1 billion of equity was released in 2003 and the same is set to be release this year2. Currently, over 65s have over £3.3 billion outstanding in Equity Release products3, an increase of 2.14 billion since June 2002 and this is set to grow substantially in the future.
“Equity Release is a safely regulated market with the introduction of a strict new code for Home Reversions established by the industry’s governing body, SHIP (Safe Home Income Plans) and regulation of Lifetime Mortgage, from the end of October, by the FSA. Equity Release is not suitable for all consumers but can provide those whose largest asset is their home with a much-needed boost to their retirement income or lifestyle.“
