Women are particularly apprehensive about later life finances according to Claire Singleton, chief executive of Legal & General Home Finance.
Singleton said: “With the pandemic undoing so many retirement plans, and the jobs market remaining unsteady, people are understandably apprehensive about their later life finances.
“This is particularly the case for women who, as we know, tend to have smaller pension pots than men.
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“Our research, likewise, found that women are far more concerned about their incomes than men, and are also more worried about job security and the economy more broadly.”
Singleton added in her review of ‘Equity Release Council & Key research: The Pension/Property Paradox’, that she urges people to engage in their finance.
She went onto explain that people must save for their retirement at the same rate as they were prior to the pandemic.
Research collected by Legal & General Home Finance shows that many savers in their 50s were reducing their retirement savings significantly due to pandemic pressures, potentially seeing them £100,000 worse off by their mid-70s.
Singleton said: “We face challenging times, but projections such as these show how decisions taken today can have a huge impact further down the line, making regular engagement and planning key to instilling financial resilience in later life.”
Singleton believes that it is important for people to understand the full range of options available to them.
She added: “Many over-55s have a considerable proportion of their wealth tied up in their properties, and unlocking this, either by downsizing, or equity release, could help fill the increasing gap in retirement incomes.
“However, homeowners considering this should always remember that equity release is a long-term product, not a short-term fix, and they should consult an adviser before making any decisions.”