This is despite the fact that 45 per cent of all those surveyed see it as a possible route in order to meet living costs later in life.
The research found that rather than splashing out on luxury purchases, most would simply use the extra cash to improve the quality of their everyday life.
Factors stopping people from investigating equity release are a reluctance to reduce their child's inheritance or concern about the level of debt incurred.
Bob Mottershead of Newcastle Building Society’s Equity Release Service believes that the two per cent who have already taken out an equity release plan are just the tip of the iceberg.
He said: “Equity release has been the subject of a lot of bad press, but it is clear that the work that has been done to regulate and re-educate on equity release is beginning to bear fruit. Add to this falling interest rates on equity release products and flexible options and the market is certainly set to grow.
“However, seeking advice and getting a personalised illustration before committing to an equity release product is absolutely essential, so it’s quite concerning to see from the research that so many people don’t know where to go for guidance."
