Money worries during pandemic sees rise in equity release consideration

New research from over 50s finance specialist SunLife has found that, as a result of the pandemic, six per cent of homeowners over 55 would now consider taking out an equity release plan when they previously wouldn’t have.

SunLife’s Equity Release Report 2020  shows that:

1. Those who say the pandemic has made them think that ‘life is too short’ and see equity release as a way of funding all the things they’ve always wanted to do.
2. Those who have been impacted financially themselves, or have family who has and are now considering equity release as a way of boosting falling incomes, pensions or savings

Many of those surveyed said that having their lives turned upside down by the impact of Covid-19 has made them reassess their priorities and take a more ‘money is there to be spent’ attitude to life. These people are looking at the cash tied up in their homes and realising that unlocking it could make a big difference to their lives.

Others, however, are struggling financially and are realising equity release could offer them that vital cash injection they need.

Simon Stanney, equity release director at Sunlife said “Our research shows that Covid-19 has impacted people’s approach to money. Some have been forced into looking for ways to boost falling incomes or pensions, or into helping others who are struggling, while for others it has been a wake-up call, making them realise they can’t take their money with them, so they may as well spend it now.”

“Earlier in the crisis, we saw a shift in the reasons why people were enquiring about equity release, from ‘enhancing’ their own lives towards ‘gifting’ i.e. looking to release cash to help family members who had been hit by the crisis, so I am not surprised to see there has been a shift in consideration too.”