Covid makes over-55s look at equity release

RESEARCH from over-50s finance experts 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.

Many of those taking part in the survey 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.

Comments from respondents who said they would consider equity release as a result of the Covid-19 pandemic include:

“You never know what is around the corner so make the most of life now.”

“We must live for today and not tomorrow.”

“Life is too short, and you need to live it when you can.”

One respondent, in his late 50s, summed it all up well when he said:

“Covid-19 has damaged us financially. We might have moved next year, but I can’t think we will do so now.

“We need to fund university education for our son but used up savings to get through Covid, so might want to use equity release.”

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.”