It also highlights a lack of knowledge of the plans on offer, how they work and the safeguards the industry has put in place to protect consumers.
The study, which questioned more than 1,000 homeowners aged over 55, suggests that opportunities for advisers to discuss strategies for using housing wealth in retirement peak as people prepare to give up work. It also supports calls for more help to be focused on the over 50s facing crucial decisions about how best to organise their finances for retirement.
Stephen Lowe, group director of external affairs and customer insight at Just Retirement, commented:
"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."
Overall, the study found professional advisers were the preferred source of information on equity release in 19 per cent of cases, but for those set to retire in the next year this more than doubled to 39% and for those one to two years out it was 36%.
"People are most likely to seek information from intermediaries but cited a variety of other sources including banks, solicitors, friends and family and the internet," said Stephen Lowe. "But the obvious spike among those yet to retire suggests a clear opportunity for advisers to engage with this age group at an early stage.
"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."
Equity release, which allows homeowners to access the value while still living in their homes, can be used in a variety of ways such as to give an income boost or to gift money while still alive. But the study shows lack of consumer understanding that professional advisers can help to address.
Only one-in-10 could name an equity release provider without being prompted. Qualitative research showed the majority did not know basic facts such as that equity release is regulated, interest rates are fixed or the ‘no negative equity guarantee' that the loan repayment will never exceed the property value.
"It is inevitable that people will need to consider housing wealth alongside financial planning for income, inheritance or long-term care and professional advisers are best placed to help them," said Stephen Lowe. "These are difficult times and we believe equity withdrawal should be factored into the policymakers' decisions as well as being placed firmly within financial planners' range of solutions.
"Retirees' incomes and particularly those approaching retirement are being squeezed. In this environment, equity release is clearly part of the solution to help retirees generate income and capital to attain an acceptable retirement."
Just Retirement sponsored the research paper - The role of housing equity in retirement planning - to give policymakers an insight into the thinking of real retirees who need to make intelligent decisions about how to deploy their assets during retirement.
