Equity release 'a useful means of supporting retirement'

Equity release could become an increasingly important tool for people looking to raise funds for retirement, new research suggests.

Many older people may not be able to achieve their desired standard of living through pensions alone, so may look to alternatives such as equity release to raise additional funds, according to a report by the Pensions Policy Institute (PPI).

Equity release could become an increasingly viable option because, according to the PPI, around 80 per cent of pensioners could be owner-occupiers within the next few decades if current trends continue.

"Many people will need to contribute more to their pension during working life, work longer or run down savings, investments or housing wealth to achieve a standard of living in retirement they might consider acceptable," said PPI research director Chris Curry.

The PPI is an educational charity that aims to provide non-political, independent comment and analysis on pension policy in the UK, and was set up to undertake rigorous research from a long-term perspective.

Ashall Glover Financial Services are equity release specialists