Around 24% of UK home-owning women over 55 do not have a private pension, according to research.
SunLife surveyed more than 1,000 people in the UK over 55, who either own their home outright or with a mortgage.
It found that 24% of women said they didn’t have a private pension compared to just 6% of men.
Worse off
The survey also revealed that 22% of the women over 55 in the survey said they were financially worse off than they expected to be at this stage in life compared to 14% of men.
When asked why they think they are worse off, 70% of women said it was because the cost of living has risen, while 47% blamed low interest rates.
In comparison 55% of men blamed rising living costs while 40% cited low interest rates as the reason.
Equity release
According to SunLife’s research, on average, women over 55 have lived in their homes for 24 years and seen their homes increase in value by around £111,000 ($144,000, 128,000).
So, for women over 55 who own their own home and are looking for a cash lump sum, unlocking some of the value in their homes via equity release rather than by moving, could offer the solution.
When asked if they would consider equity release as an option for releasing cash, one in 34 women over 55 said they already had, and over a quarter (28%) said they would consider it, or already are considering it.
Simon Stanney, who is the equity release director at SunLife, said: “Downsizing is an obvious choice when it comes to releasing cash from your property.
“While there will be many women who do not have a private pension but will benefit from their partners’, there will still be some women over 55 who simply do not have sufficient means to fund their retirement.
“However, these women may have a significant amount of equity in their homes. Many are reluctant to leave their homes, and that is when equity release can offer a solution.”
