The government has been warned that urgent action is needed to ensure housing wealth becomes a recognised part of mainstream retirement planning, with single women most likely to have smaller pensions.
A new report published by UK consumer group Fairer Finance has warned that urgent action must be taken to ensure housing wealth becomes a recognised part of mainstream retirement planning to improve living standards in later life.
With the Second Pensions Commission revealing that 15 million people in the UK are under-saving for retirement, the new report has found that more than half of households aged 60+ might need to access their housing wealth to maintain their desired living standard by 2040.
Inequalities in retirement living standards
However, the report also revealed significant inequalities in retirement living standards, with single women having on average 48% less pension wealth than men. In fact, the report’s initial findings revealed that some 65% of single female homeowners aged 55-79 face a retirement income below the Pensions UK moderate living standard. This is despite holding on average £225,000 in untapped housing wealth. This compares with 44% of men.
‘While a growing number of people are approaching retirement without enough pension savings, many of them are sitting on housing wealth that could unlock a better retirement,’ says James Daley, managing director of Fairer Finance. ‘Single women, in particular, often have the biggest income gap in retirement, but our data shows that, on average, they have no less housing wealth than single male households.’
Single women taking the lead
Indeed, single women are leading the way in taking out equity release plans, with this demographic accounting for 32% of plans taken out in the second half of 2025, compared to 18% of single men.
Single women were also more likely to be aged 80 or over when taking out a new plan than single men or couples, a fact that Fairer Finance says reflects both women’s longer life expectancy and the scale of the retirement income gap facing single women homeowners. The most common reasons cited for considering an equity release plan were paying for care in later life and home adaptations, such as adding a stairlift or walk-in shower, as well as using it to boost pension income and savings.
Exceptional professional advice needed
The report shows that traditional pensions alone are no longer enough to plan for later life, according to Jim Boyd, Chief Executive of the Equity Release Council. ‘For many, their home is their most significant financial asset, and incorporating housing wealth into the mainstream planning process can mean the difference between merely getting by and enjoying a genuinely secure, comfortable retirement.’
Boyd adds that policymakers need to catch up with the pressing needs of people being failed by having inadequate pension savings. However, unlocking this potential safely requires breaking down traditional advice silos and ensuring access to exceptional, high-quality professional advice.
The Equity Release Council says the government needs to do more to help people who don’t have enough pension savings. It also says people should be able to obtain clear, high-quality advice that looks at all their financial needs together.
If you’re considering an equity release scheme, an experienced later life lending specialist can offer bespoke advice to help you find the right solution for you. We’re here to help if you’re looking to explore your options.