Seniors Money


The Global Market

What's driving the need for Home Equity Release?

Several social, economic and demographic factors are driving a growing need for Home Equity Release (HER).

The combination of falling birth rates and rising life expectancy means that around the globe the proportion of the population aged over 60 is rising rapidly. Some examples:

% Population aged 60+

Now 2040
Australia 16 30
Canada 17 33
France 21 35
Germany 23 37
Italy 24 46
Japan 23 45
NZ 16 30
Sweden 22 37
United Kingdom 21 34
United States 16 26

The growing 'Pensions Gap' between what is available (from state-sponsored and private pensions) and what is required to fund people in their retirement. Already in many countries current pension and public health care arrangements are not sufficient.   The cost of providing public benefits to people over the age of 60 will grow steadily as the proportion of the population made up of older people grows:

Cost of public benefits (age 60+) as a % of GDP

Now 2040
Australia 8 17
Canada 8 23
France 16 28
Germany 15 26
Italy 17 34
Japan 13 27
New Zealand 8 17
Sweden 13 23
United Kingdom 12 20
United States 8 23


Attitudes to family inheritance and the family home are changing:

  • Older generations live longer and have their own financial needs to take care of.
  • Meanwhile younger generations are often more affluent than their parents ever were.
  • In many countries enormous growth has been experienced in property values. The value of 'the inheritance' is correspondingly far greater than in previous generations.

Expectations amongst older people to the right to a continued, high standard of living are growing.

Releasing equity from the home to fund financial needs in retirement is increasingly becoming a normal and significant aspect of financial planning for retirement.