How are the over 50's managing their finances?

A new study from Saga Equity Release today reveals that a fifth* (17%) of over 50s have little money left over to enjoy their retirement once they have paid off their debts and more than two fifths (41%) of retirees find clearing their debts difficult**, highlighting how hard it is for many people to fund their dream retirement. However, an increasing number of over 60s are now using equity release to unlock money so they can enjoy a better quality of life in retirement. With more than one in ten** (13%) over 55s retiring in debt, equity release is being used to clear these and alleviate financial worries, leaving people better off in real terms and free to get on with enjoying their retirement. The research shows that two fifths (40%) of this age group have used equity release to clear borrowing, whilst a third (31%) use it to re-mortgage.
Over half of over 60s (52%) use equity release to carry out home improvements and transform their homes, while a third (34%) fund the holiday of a lifetime. A generous 20% give the money as a gift to family.
Andrew Goodsell, Executive Chairman, Saga Group, comments: “This study dispels the concept that equity release is the last resort for those who have nowhere else to turn. We have found that people are increasingly likely to use equity release to clear debts, enabling them a better quality of life in retirement.”