Single women are increasingly taking out lifetime mortgages with the proportion of female customers in this market rising by 50% since 2016.
According to research by OneFamily the trend is being driven by factors such as women having lower pensions and savings than men as well as rising divorce rates amongst over-55s.
The equity release provider’s research discovered one in three lifetime mortgage customers were now single women compared to one in four two years ago.
Married couples were the most common group of lifetime mortgage borrowers, accounting for 42% of the market and single men were the least likely to be taking out the product, representing just 23%.
Retirement income
OneFamily’s data revealed women take, on average, £88,000 from the equity in their homes to boost their retirement income in order to cover the shortfall in their pension savings.
The research discovered women over 55 have saved, on average, £70,000 for their ‘golden years’ but hope to have annual retirement income of £20,000.
OneFamily explained that with retirement life expectancy of 20 years, a woman retiring at 66 and living until 86 with a maximum of £8,500 a year from the state pension would need three times this amount.
It leaves a significant gap to cover. But by taking equity from their homes, women can stand more chance of achieving their retirement income expectations.
Confidence
Nici Audhlam-Gardiner, managing director of Lifetime Mortgages at OneFamily, said: “It is heartening to see more women are becoming confident to take advantage of the wealth locked up in their properties.
“Many lose out on opportunities to save more for retirement, as they are the primary caregivers, taking career breaks to raise children or care for an ill or elderly relative, and so inevitably, end up with less money for retirement.
“A lifetime mortgage means they can access the equity in their home, gaining an additional income, which they can use to enjoy their retirement.”
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