The full state pension in 2009/2010 currently stands at £95.25 a week for a single person and between £152.30 and £190.50 a week for a couple depending on their national insurance contributions. The big question is will you be able to retire on the state pension provision?

Well, according to a survey conducted by Axa the amount of individuals that are likely to retire in ‘pension poverty’ is set to increase significantly in the future. The research also found that the majority of those surveyed (64%) intend to retire on the state pension alone. Perhaps more alarming is the fact that the number of individuals opting out of occupational schemes is increasing, showing clear signs that people intend to rely on other sources of income to fund their retirement.

So if not a pension to fund retirement, one can ask the simple question what other assets will people use to fund their retirement? Well, interestingly a fifth of respondents aged between 25-34 years old, felt that they will use equity release as a key tool to help them fund their later years. This is a clear shift of attitudes from individuals who see their homes in a very emotional light and are hesitant to give up ownership to help with their lifestyles upon retirement.

Is equity release starting to pick up pace and gaining higher expectations?

Well, one of the main concerns people have about turning to equity release is the reduced inheritance they would leave their children. However, it seems that this attitude is losing steam in favour of enjoying one’s later years with the assets one has accumulated during their working lives.