Almary Green predicts rise in demand for equity release

Demand for equity release products will surge in the coming years as the baby boom generation begins to retire, says Almary Green.

According to MD Carl Lamb, equity release is an area of advice which could grow substantially in the years ahead as changing UK demographics prompts growth in the percentage of the population reaching retirement age.

"The baby-boom generation is now approaching retirement, but they have a very different attitude from those who have retired in the past 20 years or so," he says.

"They have mortgages, they have been used to borrowing through unsecured loans, and they have been far more generous to their children than their own parents were with them.

"As a result, they are more likely to go into retirement with debts and the equity in their home as their largest asset. They will be cash poor but asset rich."

Lamb adds if the baby-boomers' personal pensions are not delivering adequate income - a scenario more likely in light of the demise of DB schemes - they could use equity release to supplement income.

"The most common reason for clients to consider equity release at present is to pay for long-term care and have a better quality of life in their frail years but as the baby boomers begin to retire the reasons will grow," says Heather Sonnet, who specialises in financial planning for later life at Almary Green.