Women in Later Life

Women in Later Life: How Equity Release Can Support Retirement in the UK

Women in later life often face unique financial challenges as they approach retirement. Lower pension contributions, career breaks, and longer life expectancy can make planning feel overwhelming. Yet, one option that’s growing in popularity is equity release. This allows eligible homeowners to access funds tied up in their property, helping to support a more comfortable retirement without needing to move.

Rethinking Retirement for Women in Later Life

As retirement draws closer, many women begin to reassess their finances. According to the Office for National Statistics, women in the UK live an average of 3.7 years longer than men, yet their pension pots are typically smaller. Research from Now: Pensions and the Pensions Policy Institute found that, on average, by the time women reach retirement age, they have £69,000 less in their pension than men.

Women are also more likely to take time off for caregiving, work part-time, or earn less overall. This leads to smaller contributions and less compound growth over time. Although personal circumstances differ, it’s crucial to acknowledge these patterns and consider alternatives.

A key issue is the lack of confidence many women feel about retirement planning. Research by Schroder’s Personal Wealth (2024) showed just 12% of women felt very confident in their retirement finances, compared to 27% of men. This reflects a broader “advice gap”, where women are less likely to seek professional financial support.

Instead of feeling discouraged, women should feel empowered to explore options. Equity release offers one such path—especially when traditional methods fall short.

What Is Equity Release? A Tool for Later-Life Planning

Equity release enables homeowners aged 55 or older to unlock some of the value in their home. The most common product is a Lifetime Mortgage, where you borrow money secured against your home while continuing to live in it.

Importantly, there are no monthly repayments required unless you choose to make them. Interest is added to the loan and repaid when the home is sold, usually after death or moving into long-term care.

Equity release might appeal to women who:

• Wish to stay in their home

• Have limited pension income

• Need funds for home improvements or care

• Want to support family financially

Let’s look at an example:

Each woman had different needs but used equity release to improve her quality of life without downsizing.

Beyond the Numbers: Why Equity Release Appeals to Women

For many women in later life, emotional attachment to their home is strong. This is often where they raised children, cared for partners, or built a life. Selling up can feel like a loss—not just of a house, but of security and identity.

Equity release enables you to remain at home while accessing much-needed funds. With modern plans, flexibility has improved. For example:

• Drawdown options: Access funds in stages to reduce interest buildup.

• Voluntary payments: Pay back interest or capital without penalties (subject to criteria).

• Inheritance protection: Ring-fence part of your home’s value for loved ones.

• No-negative equity guarantee: You will never owe more than the value of your home.

These features make it easier to tailor plans to individual goals. The Equity Release Council ensures that products meeting their standards protect consumers.

Facing Fears: Why Women Avoid Financial Advice

Even with helpful solutions like equity release, some women delay getting advice. Reasons often include:

• Fear of judgement

• Unfamiliarity with financial terms

• Partner handled previous finances

• Belief it’s “too late” to make changes

However, speaking with a qualified equity release adviser can shift that mindset. They understand that every client’s journey is different and that there’s no such thing as being “too late” or “too unprepared.”

Sarah, a 67-year-old widow, initially hesitated to speak with an adviser. But after learning about her options, she released £63,000 from her home to renovate and improve accessibility. She now feels more confident about her future.

Women in Later Life | Key Considerations Before Releasing Equity

Before committing to equity release, it’s important to understand how it might affect your circumstances:

• It may reduce the value of your estate

• It can impact entitlement to means-tested benefits

• There are costs involved, such as arrangement fees and legal costs

• Not suitable if you plan to move soon

That’s why personalised advice is essential. An adviser will provide a Key Facts Illustration, showing how the loan will grow over time and how it fits with your wider financial picture.

It’s also important to talk with family, especially if they are beneficiaries of your estate.

Women in Later Life | Starting the Journey: What to Do Next

If you’re curious about equity release, the first step is a free consultation with a later-life mortgage adviser. They will explain:

• What options are available

• What products meet your needs

• How it may affect your benefits and estate

You can also check the Equity Release Council website (equityreleasecouncil.com) to see if your adviser is approved. Choosing a member firm gives peace of mind.

We also recommend reading our Beginner’s Guide to Equity Release for an overview.

Equity Release for Women in Later Life

Women in later life often face a unique mix of financial concerns and emotional priorities. Whether the goal is to improve your home, give a gift to family, or gain peace of mind, equity release could be part of the solution.

By exploring this option with a qualified adviser, women can take back control of their retirement planning on their own terms.

Remember, there’s no one-size-fits-all answer. But you deserve one that works for you.

Richard Jeremiah-Clarke

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