The research further shows that compared with older homeowners, more younger homeowners are considering including equity release in their financial planning
More than a tenth (12%) of UK homeowners aged 40 and above would consider releasing equity from their property to supplement retirement income, according to Canada Life.
The average age they would consider doing so is 66, shows the data.
Similarly, 12% of homeowners over the age of 40 plan on downsizing their property.
Compared with older homeowners, more younger homeowners are considering including equity release in their financial planning, the research further shows.
As against just 9% for those aged 65 and over, an estimated 15% of homeowners aged 40-64 are thinking about or planning to release equity from their property.
36% of those surveyed are not planning to release equity from their property, with their main reason for not doing so is driven by wanting their property wealth to go to their family.
Other reasons for homeowners not releasing equity include, thinking equity release has a bad reputation (28%), believing debt in retirement is bad (26%), reading negative media coverage of equity release (20%), selling outright and downsizing (16%) and believing it is too expensive (15%).
Alice Watson, head of marketing, insurance at Canada Life, said: There are many homeowners who are still unaware of the benefits of releasing equity from their properties, or are reluctant to consider it due to misunderstanding the product.
For many homeowners, equity release can be an effective way to fund retirement, or simply boost income, while allowing them to stay in their forever homes and enjoy the retirement lifestyle they have wished for, she said.
She said: As an industry, we must dispel these myths and highlight the valuable role property wealth can play as part of a holistic retirement plan.
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