'At retirement' market set to double in 5 years

Friday, May 2, 2008

The 'at retirement' market is expected to double in the next 5 years to be worth over £30bn a year. The market is likely to grow at 20% a year over the next 5 years creating demand for products designed to convert invested assets into income and income draw down products.

The rapid growth in this market is partly because of the pension sales boom in the late 1980's and early 1990's. Many people who took out personal pensions back then are now coming to retirement. With the prospect of a long retirement ahead they will be looking at ways to shore up their income if their pension fund has underperformed. These people are likely to be asset rich but could still have a poor income.

This should mean that the demand for products such as equity release will increase. These were described in our previous blog and incorporate home reversion plans and lifetime mortgages.

If you have any questions on this article or others like it, please feel free to contact Solution Mortgages on 0845 123 1260 or visit us at www.solution-mortgages.co.uk