Coins More than 40 per cent of retirees find clearing their debts difficult, making it much harder to fund their ideal retirement. However, an increasing number of over 60s are now using equity release to unlock money so they can enjoy a better quality of life in retirement.
With more than one in ten over 55s retiring in debt, equity release is being used to clear debts and alleviate financial worries, leaving people better off in real terms and free to get on with enjoying their retirement. The research also showed that two-fifths of this age group have used equity release to clear borrowing, while a third use it to re-mortgage.
More than half of over 60s use equity release to carry out home improvements and transform their homes, while a third fund the holiday of a lifetime. A generous 20 per cent give the money as a gift to family.
Andrew Goodsell, Executive Chairman, Saga Group, commented: "This study dispels the concept that equity release is the last resort for those who have nowhere else to turn. We have found that people are increasingly likely to use equity release to clear debts, enabling them a better quality of life in retirement."