"Few people are budging in retirement. Instead, they are ageing in place, preferring to remain in their own homes for as long as possible."
69% of adults plan to remain in their current home in old age and an increasing percentage want to release equity to generate income, according to research from Canada Life.
The number of adults planning to stay in their home is up 5% compared to 2016, with 24% saying they would consider downsizing and less than 4% saying they would sell or rent their house when they retire.
Of respondents who said they will stay in their home, 6% plan to release cash from the property, up from 5% in 2016.
The latest figures from the Equity Release Council reveal that in the first two quarters of 2019, £1.85 billion was lent to customers using equity release, more than double the amount in the first two quarters of 2016 at £908 million.
Alice Watson, head of marketing and communications at Canada Life Home Finance, commented: “The findings from this research are important given the current concerns surrounding how people will fund their retirement. Whilst average life expectancies continue to increase, people will need to spread their savings further in later life.
“Few people are budging in retirement. Instead, they are ageing in place, preferring to remain in their own homes for as long as possible. There may be several reasons for this: to keep the family home, stay close to friends or remain in comfortable and familiar surroundings. Whatever people’s motives, it’s important that the industry makes clear that equity release is a way for people to retain ownership of their property, age in place and boost their retirement income.
“If people want to grow older in their homes, then they might need to make improvements, to make life more comfortable and their property more accessible. Our customer data shows that this is one of the key reasons why people use equity release.”