The younger generation have conflicting opinions from their parents on the adequacy of retirement income that ensures a decent standard of living, new research indicates.
A survey conducted by Just Retirement, questioning a split amount of retired and pre-retired individuals, finds 82% of retired people are ‘happy’ with their standard of living. But more than half of younger brits are worried their parents are not as comfortable as they themselves woant to be in retirement.
The survey finds 36% of retired individuals would like to boost their income, although 95% want to sit on their properties for as long as possible.
Moreover, eight out of ten older respondents say leaving an inheritance is vitally important, while the same number of pre-retireees expect to inherit the parental home.
Nigel Barlow, marketing manager at Just Retirement, says with results showing the importance of property as an investment tool, further findings reveal a serious lack of understanding regarding equity release.
Just Retirement says although awareness of equity release is high among both groups, detail of product offerings paint a different picture. While four in ten people are aware equity release involves selling some equity in their home, only 26% of the pre-retired and 16% of the retired understand a loan is paid back upon death.
Additionally, only 16% understand that either a lump sum or income can be taken from the plan.
Barlow says resistance to equity release is a rweault of a lack of understanding adding: “It is very clear that there will be a significant requirement for a wider range of more flexible equity release products as more and more people begin to see property as a part of their total asset mix. Only 5 months ago, the Institute of Actuaries published data suggesting that around 4.3 million people could benefit from these schemes.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Gareth Vorster on 020 7968 4554 or email [email protected].IFAonline
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