Homes help improve pensioners' retirement, expert says

Pensioners trying to improve their quality of life in retirement may be turning to their home as a source of funding.

That is according to Roger Ramsden, Chief Executive of Saga Services, who noted the current squeeze on pensions is causing more retirees to opt for equity release.

He said: "The demographic shift and the continuing erosion of pensions, means homes are becoming more than just an individual's biggest asset.

"It's now also a potential source of funds to help them live the life they would like in retirement."

This comes amid new figures from the Safe Home Income Plan which showed there was a well-paced increase in the number of people releasing equity from their homes.

Savers approaching retirement are facing a greater squeeze on their incomes amid pension reforms and greater inflation hikes.

While the Bank of England revealed inflation hit 5.6% in September, Saga calculated the reality for people aged between 65 and 74 was a 6.4% inflation rate, potentially causing more retirees to choose equity release.

Posted by Liam Tomlinson