Recent research from Canada Life has highlighted a major disconnect in UK retirement planning — and it’s one I see regularly in real client conversations.
Despite property being the single largest asset most people own, three quarters of homeowners planning for retirement are not factoring in equity release at all.
That’s not a niche oversight. That’s a structural blind spot.
The Research: What Homeowners Are (and Aren’t) Being Told
Canada Life surveyed 2,000 adults aged 40+, and the results are telling:
- Only 7% of homeowners who had spoken to a financial adviser had been presented with equity release as an option
- Just 6% said they raised the subject themselves
- A staggering 76% hadn’t discussed equity release at all
This is despite 73% saying they are familiar with equity release in principle.
In other words: people have heard of it — but don’t actually understand it.
The Misconceptions Are Doing the Damage
The research also uncovered widespread misunderstanding:
- 67% didn’t know you can still pass a property on to children
- 63% believed you couldn’t move house after releasing equity
- 82% were unaware of the mandatory no negative equity guarantee
- 42% wrongly believed they could end up owing more than the home is worth
That last point is crucial.
All modern lifetime mortgages that meet Equity Release Council standards include a no negative equity guarantee — meaning neither you nor your estate can ever owe more than the property value, provided the terms are met.
Yet most people still think equity release equals “the bank taking the house”.
That simply isn’t how today’s products work.
Why Equity Release Is Becoming More Relevant — Not Less
As Pete Maddern from Canada Life put it:
“As people live longer and many individuals find their pension savings falling short, unlocking money tied up in property to supplement pension income is likely to become an increasingly important aspect of retirement planning.”
That statement aligns exactly with what’s happening on the ground.
We’re seeing:
- Longer retirements
- Greater pressure on defined contribution pensions
- Rising care and later-life costs
- Clients who are asset rich but income constrained
Ignoring property wealth in that equation is no longer sensible planning — it’s avoidance.
The 2027 Inheritance Tax Shift Changes the Conversation
There’s another factor that’s flying under the radar.
From 2027, unspent pensions are due to be included in inheritance tax calculations.
That flips decades of conventional estate planning logic on its head.
In many cases, using property wealth strategically — rather than hoarding pensions — may help:
- Preserve flexible pension assets
- Support gifting strategies
- Reduce IHT exposure
- Improve intergenerational planning
Equity release isn’t just about spending more in retirement.
Used correctly, it can be part of a wider estate planning conversation.
This Is About Options — Not Products
It’s important to be clear: equity release is not right for everyone.
But it is wrong for it to be ignored.
Later-life planning should involve a joined-up discussion covering:
- Pensions
- Property
- Income sustainability
- Estate planning
- Flexibility for future care or downsizing
Encouragingly, the Financial Conduct Authority has recently been reviewing how the later-life lending framework should evolve — recognising that retirement planning can no longer live in neat, disconnected boxes.
That’s a good thing for consumers.
The Real Issue: Conversations Aren’t Happening Early Enough
The biggest takeaway from this research isn’t that equity release is underused.
It’s that the right conversations aren’t happening early enough — before options narrow and pressure increases.
Equity release should sit alongside other tools as part of a holistic, later-life planning discussion, not as a last-ditch fallback.
Because good planning isn’t about forcing solutions —
it’s about understanding all the options before you need them.
Final Thought
If your retirement plan relies heavily on pensions but your largest asset is your home, that imbalance deserves a proper conversation.
Not a sales pitch.
Not a one-size-fits-all solution.
Just clear, informed planning.
👉 Book a chat here.
Risk Warning
This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.
Regulatory Status
Mortgage and equity release advice is regulated by the Financial Conduct Authority. Wills and estate planning are not regulated by the FCA.
Source: Canada Life research summary
GP Norgate Financial Solutions is a trading name of Easy Street Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority. Easy Street Financial Services Limited is a company registered in England and Wales with company number 6430453.
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