"Are You a CEO Interested in a Feature Interview?"
All Interviews are 100% FREE of Charge
Some 46% of people do not feel confident about their finances for the future, increasing from 35% in 2021, research by the Equity Release Council has revealed.
The trade association’s biannual Home Advantage study – supported by Canada Life and Equity Release Supermarket – explores 5,000 UK adults’ financial attitudes and experiences, including the role of property as a foundation of financial security.
Nearly three in five (57%) UK adults say their financial situation has worsened over the past year, with only 14% feeling their finances have improved.
Jim Boyd, chief executive of the Equity Release Council, said: “The deterioration of confidence in our future finances since the Covid pandemic is shocking, particularly among those about to retire. More people are having to make hard choices which will potentially have a long-term impact on their financial security.
“Mortgage repayment pressures mean many households are planning to use their pensions to pay off mortgage debt, possibly at the expense of a comfortable retirement. While others are struggling to pay these higher mortgage costs during their working lives which is limiting the amount they can save into their pension.
“Although many hope to retire debt-free with a healthy pension pot, we mustn’t forget the millions who can’t save or pay down their mortgages and encourage them to consider all their options including property wealth.
“I am concerned that homeowners and their families might be struggling to get by when the wealth locked up in their properties could fund far better lives in retirement. Anyone lucky enough to own a home should give careful thought to how lifetime and later life mortgages can support their finances, and not overlook options that are literally on their doorstep.”
Mortgage holders plan to use pension savings to ease affordability worries.
One in three (30%) mortgage holders say they already have or plan to use some of their pension savings to pay off their mortgage.
Indeed, one in five (20%) mortgage holders say they find their current loan unaffordable.