81 per cent of over-55s would feel confident in taking out an equity release plan without seeking advice, research from Moneyfacts suggests.
44 per cent thought they have no need for advice, 29 per cent would not trust an adviser, and 8 per cent of respondents believe financial advice to be too expensive.
In late July over-50s specialist SunLife published research that only 11 per cent of over-55s fully understood the rules of equity release.
According to Moneyfacts’ research, the two main reasons for not entering an equity release plan were its impact on inheritance (39 per cent) and the offered interest rates (30 per cent).
Equity release appears to be a taboo subject for some, too, with 33 per cent of over-55s asked saying that they would never bring the subject up with family.
Meanwhile, over half, (52 per cent), of respondents said that they would not consider equity release to fund their retirement.
Moneyfacts finance expert Rachel Springall says: “The idea of taking out an equity release plan has clearly crossed the minds of many consumers, but what is worrying is that most of our survey respondents felt they could go through the whole process without seeking advice. This could be an expensive mistake down the line if consumers choose the wrong deal.
“Equity release won’t be right for everyone, so it’s positive to see that most of our respondents have considered the impact on their children or dependants’ inheritance. However, one area that could see improvement is striking up a conversation, as almost half of those asked have not discussed the topic at all.
“It’s important that consumers take the time to carefully think about equity release and discuss it with anyone who could be affected, which is why it’s good that these responses shed a light on consumers’ attitudes toward such a plan. Thankfully, equity release is being taken seriously and is not seen as a quick fix.”