Equity release 'plays a big part in pension plans'

People considering home equity release schemes have been told that an estimated 1.3 million people plan to use their property to provide a retirement income, according to LV=.

The Liverpool-based friendly society's research indicates that while one-quarter of over-50s, or 2.3 million people, expect to rely solely on the state pension, many are also considering the possibilities of equity release.

Vanessa Owen, head of equity release at LV=, said that this is despite people believing that their homes have depreciated in value by around £27,000 in the last two years.

"Trading down to a smaller house, or using a suitable equity release product to get funds out of their existing home, can therefore play a big part in helping to make people's retirement years more comfortable," she added.

Equity release trade body Safe Home Income Plans recently said that more than 50 per cent of Britons expect to have a high standard of living in retirement.

Ashall Glover Financial Services are equity release specialists.