According to the latest report by Key Retirement Solutions, the equity release market is on the up from one year ago. KRS claim that during the first three months of 2010, specialist equity release schemes rose to £216.9 million compared to £183.1 million for the same period in 2009. Safe Home Income Plans suggest that as more people need additional income for retirement it seems logical that they would turn to their most valuable asset; their home. However, the report also found that 30% of individuals who opt for equity release do so for a specific reason rather than a small minority (6.5%) who use the money to fund their retirement. This is very interesting as equity release has been perceived as a means to help post-employment, however, it could not be further from the truth.

A survey conducted by Bridgewater Equity Research endeavored to dig deeper into the reasons why customers opt for such a product. It found that the top reason is to pay-off an existing mortgage, with almost 30% of respondents choosing this option. In second place, with 17% of the vote came home-improvements, while consolidation of debts came in third spot with 15% of respondents choosing equity release for this reason. This report certainly adds strength to the argument that equity release has a much larger role to play in people’s lives than to fund retirement. This is so much so, that other reasons cited were to buy a car or a holiday home with the funds that they released from their existing property.

Equity release can be a valuable consideration to any financial decision that is being made whether it is pre or post retirement. However, appropriate advice should be taken to ensure that one is fully aware of all aspects of the product prior to putting pen to paper.