The article discusses the growing interest in equity release products, particularly in the context of gray divorces among older couples in the U.K. and the U.S. Research reveals that a significant number of older adults face financial challenges, with many lacking sufficient pension savings despite owning homes. As equity release gains popularity, around 18% of surveyed adults indicated a willingness to use savings to buy out a partner, while others consider reverse mortgages. This trend reflects a broader acceptance of these financial products across Europe, likely improving sentiments towards them among retirees.
While as many as 18% of respondents indicated they would seek to buy out their partner using savings, about one in 20 couples turn to equity release products like reverse mortgages.
Previous research from L&G in 2022 indicated that one-third of all non-retirees (35%) had less than 10,000 (approximately $12,450 USD) in their pension account but owned a property.
In the U.S., reverse mortgage industry professionals have long touted the product as one that could help facilitate so-called gray divorces that occur with couples 50 and older.
Many of his colleagues in the financial planning space had been increasingly dealing with issues of gray divorce, highlighting a growing trend in financial planning.
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