NU sees equity release market doubling in five years
Norwich Union (NU) is predicting that the UK’s equity release market will thrive during the recession.
The group sees the impact of the current economic turmoil on savings, a general lack of retirement funding and the Government’s growing emphasis on self-funded retirement as the main drivers in the market.
The insurer expects High Street banks and Building Societies to increase their presence in the sector, which could double in size in the next five years.
In 2007 equity released provided £1.2 billion in cash to homeowners and according to NU this could rise to £2.4 billion by 2013.
Expansion on this scale would mean that over 1.5% of the UK’s homeowners aged over 65 would use equity release products annually to increase their income.
NU’s head of marketing post retirement, Anthony Rafferty, says he expects more than 115,617 Britons to enter into 70,500 equity release schemes in 2013, as self-funded retirements become a necessity for many.
However, Mr Rafferty advises that equity release is not for everyone; careful advice needs to be obtained before opting for a scheme.
Category: Insurance News, Norwich Union Insurance News
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