14/10/2009 13:20:49

Equity release 'becoming more popular'

An increasing number of people will look to use equity release as a means of funding their retirement, it has been suggested.

Pointing out that interest in such schemes has grown in recent months, Safe Home Income Plans director general Andrea Rozario states the financial crisis has had a severe impact on people's pension pots.

An ageing population was also cited as one of the main drivers in equity release, as older people are concentrating less on leaving an inheritance for their family but are focusing more on maintaining a certain standard of living during their retirement.

"It's only natural that people will think about how they can utilise their biggest asset, which is their bricks and mortar," Ms Rozario claims.

Indeed, figures from the organisation reveal that the total amount unlocked via equity released in the third quarter of 2009 stood at £214.2 million, compared to £188.9 million between April and June.