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Single female homeowners turn to equity release

Tuesday 25th August 2009

New figures released today show an increasing number of single homeowners choosing to take out equity release – the majority of which are female, according to research from the Equity Release Solicitors Alliance (ERSA).

The number of single people taking out equity release has risen steadily over the past four years, from 28 per cent in 2005 to 39 per cent now. The number of couples taking out equity release during this same period has declined.

When split down the gender line, women make up the greater percentage of single older homeowners who have taken out equity release, double the numbers of men.

In 2008, the average age of a single woman who took out equity release was 71 (men: 70) and in 2009 this has dropped to 69 (men: 68).

Over the eligible age of 60 for state pension, these figures suggest it is possible that women are struggling to make their basic pension allowance stretch. As the average life expectancy of women is four years longer than men, with women at 81 in contrast to 77 years for men, there may be an increased need to generate additional income from equity release, aside from pension and savings, to support a decent quality of living for these women, said ERSA.

It added with the divorce rate at its highest among the over 60s, equity release may be offering a means to support women financially after a decrease in joint income.

Claire Barker, chairman, ERSA, said: “With the basic state pension for a single person currently at GBP 95.25 per week, it seems there is potentially a case that more single homeowners are opting to take out equity release as an additional means to make their money stretch further. Those who are asset-rich but cash poor can find equity release a solution, especially those in single households who want to retain their independence and stay in their own home.”

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