Global Equity Release Roundtable 2020 survey report predicts the market could more than treble over the next 10 years
For many people, their home is the most valuable asset they own, and unlocking housing equity can help top-up pension plans, increase retirement income or fund social care. The challenges many face in funding their retirement are similar across the globe, and as the survey suggests equity release will continue to grow as a valuable solution for older homeowners seeking to enjoy a comfortable retirement. This uncertainty is particularly acute for the significant number of over 50s impacted by Covid-19, who are likely concerned about their current finances and the impact this could have on their retirement plans.
The adoption of equity release as a mainstream financial product has accelerated in recent years, as standards improve and growth in the market encourages competition and product innovation. As the survey suggests however, there are still common hurdles every market must overcome before the product is fully understood and accepted. Key to this, we believe, is a laser focus on securing good consumer outcomes, by offering customers honest advice tailored to their circumstances.
As the Global Equity Release Roundtable 2020 survey report demonstrates, there are clearly opportunities in the world equity release market: by 2031 - the market is expected to exceed $50bn in annual releases. Australia is one of the markets highlighted by EPPARG in their report. At the forefront of developing innovative funding options for retirees in Australia is Household Capital, the Australian lifetime mortgage business that we at Legal & General invested in last year. In line with the findings we see huge growth potential not only here, but across other developing equity release markets globally. Read more here