Defaqto claims debt pressure will drive equity release
24/04/2007
Equity release will be increasingly central to sustaining the financial wellbeing of retirees in Britain, a new report from Defaqto has found.
Growing numbers of Britons will be entering retirement with a debt burden to pay off and the context of under-funded pensions schemes only exacerbates the problem, the study warns.
Releasing equity on their homes could be the only way to make up the income shortfall, the study suggests, particularly in the light of the fact that many older people continue to support their parents in old age and adult children.
For this age of homeowners, dubbed the 'sandwich generation' by an Alliance & Leicester report this week, meeting their financial obligations may require extra assistance.
But more household names in the financial services market must put equity release products out on public view, strengthening consumer awareness and building trust, Defaqto stressed.
Trust in the product hit rock bottom after products available in the late 1980s gave the market a bad name.
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