A new report by the Pensions Policy Institute suggested that equity release could play a much larger part in funding people’s retirement in the future. The report commissioned by Prudential suggested that pensioners are likely to increase the take up of equity release by up to a third within 21 years. It revealed that up to 5.2 million pensioner households could benefit from equity release by 2030.

It is currently estimated that pensioners have access to around £251 billion in housing wealth, which is likely to increase to £359 billion by 2030. These figures give us an indication of the true value equity release could have on many pensioner’s lives who are currently struggling with day to day expenses. However, interestingly the report shows that although people build up a significant amount of equity in their homes, many do not view it as a way to fund retirement.

The big question is would you opt for equity release? One of the major barriers to equity release is the emotional attachment that one feels towards their home and therefore are reluctant to give up equity. However, as the cost pressures mount up, without a significant source of revenue for many pensioners, many will have to put sentiment aside and face the reality of their predicament.