The equity release market could be one of the only sectors to benefit from a recession according to Norwich Union.
Predictions from the equity release
provider and part of Aviva
suggest that as a lack of retirement funding becomes a real problem, the equity release market will double in value to £2.4billion within five years.
In 2007 according to Norwich Union equity release
, the market was worth £1.2billion; however, as self funded retirements become necessary, the value of equity release is expected to rise.
The fact that 115,617 consumers, up from 54,090 in 2007, are due to buy 70,500 equity release plans in 2013 is a clear indication that equity release will become increasingly important in the future.
Norwich Union's Anthony Rafferty said: "While the economic turmoil has been hugely detrimental to many parts of the UK economy, it may actually stimulate growth in the equity release market.
"Going forward we see the market doubling over the next five years and truly coming into its own as a mainstream retirement planning
and funding tool."
However, Mr Rafferty warned: "Equity release is not right for everyone, although he added "for many it is the answer to their retirement income problem and we do see the market growing considerably over the next five years with an increasing number of people benefitting from equity release."Get equity release quotes and advice »
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