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Cost of retirement causes over 55s to look at equity release

Concerns over inadequate retirement savings are causing one in eight people to consider equity release to help pay for their retirement.

Research from mortgage lender Birmingham Midshires shows that almost half of those over 55 are concerned about how they are going to pay for their retirement with only 10 per cent confident that they will be able to live comfortably in retirement.

The research shows 13 per cent of people over the age of 55 are considering using equity release to help pay for their retirement, with 22 per cent of people would considering downsizing and moving home to take advantage of the value locked up in their homes.

Many people would also consider cutting back on luxury spending, living on a tighter budget or even working past 65 in order to pay for their retirement.

Birmingham Midshires director of savings and investments Tim Hague says: “When people should be winding down to their retirement and enjoying their financial nest egg, the over 55s are more concerned than ever about whether they can afford to live on what they have saved.”

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