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The number of people over the age of 65 living alone will be higher than the number of under-65s living alone for the first time by 2022, new research has found.
Analysis of ONS figures by the Equity Release Council, which represents the equity release sector, reveals there will be more than four million over-65s living alone by next year, meaning this age group will make up half of single households by 2022.
Rising life expectancy and increasing divorce rate among older people have been identified as the factors for the growth.
It has been suggested that older divorcees - dubbed ’silver splitters’ - are creating a new generation rent.
The research also found that an increasing number of older people are releasing equity from their home to fund their social life and tackle isolation.
In the UK, the number of over-65s living alone has risen by 15% in the last decade - from 3.4 million in 2008 to 3.9 million in 2018.
A parliamentary report, published this summer, also forecast that by 2046, around 1.5m million people aged 64 or over will be living in the private rented sector.
Market data for the first half of 2019, published by the Equity Release Council showed that plans to draw down equity among single people accounted for 41% of new drawdown plans agreed and 45% of new lump sum plans. The remainder were taken out by joint borrowers.
Jim Boyd, chief executive of the Equity Release Council, said: “Living alone can be costly as sole incomes are expected to stretch just as far to cover many of the day-to-day household bills.”
Added to this pressure is the fact that many of the retirees of today are set to face record long retirements as life expectancies increase, putting even greater demand on their pension pots as they’re expected to stretch further.”
He said the council is seeing a rising number of homeowners turning to equity release to supplement retirement income and help meet both day-to-day and long-term financial priorities.
Mr Boyd pointed to the supposed benefits of equity release. "The extra income can help towards holidays, visits to family and friends, and pay for additional care, hobbies and services helping to combat the loneliness and isolation which can arise for many in later life.”
However Saga has flagged the downsides of equity release, which it says include mounting interest charges on a release plan, smaller inheritance for family and missing out on a rise in house prices.