What are the main sources of pension financing most people rely on?

The recent report by Canada Life shows that wealth released from property reached £2.8billion in UK this year, with 46% of it being used for paying off an existing mortgage.

During the poll, 1,000 respondents shared their reasons for taking out an equity release loan.

According to the survey, 41% used it for home improvements, 24% preferred debt consolidation, 28% spent it on holiday, and 18% used the money for living expenses.

Home or pension?

It turns out that 52% of UK homeowners consider their pension pot to be worth a lot less than their house.

At the same time, 52% would prefer to rely on their pension and not on their property, and 28% expect to use both.

Everyday expenses

“Of course, people choose lifetime mortgages for numerous reasons, but the fact that daily living expenses is one of the most popular among them shows how homeowners see their property as an additional income source,” - noted Alice Watson from Canada Life Home Finance.

“Usually, people tend to rely on their private and state pensions when it comes to main source of retirement income”.

“Nevertheless, the amounts in their pension pots will hardly provide them with the desirable style of retirement. And while they understand that there’s more wealth in their homes, they still don’t take this opportunity”, - Watson added.