With new findings suggesting that some 15 million working-age adults will not have enough saved for retirement, what can you do to ensure your standard of living doesn’t fall short in your later years?

According to a Pensions Commission interim report published in May this year, most people in the UK are not saving enough for retirement, a number projected to reach 19 million if no action is taken.

The report finds that low- and middle-income workers are most at risk. Almost half (45%) of working-age adults aren’t paying into a pension at all, while just 4% of self-employed adults are saving for retirement.

Lack of funds in later life is already a problem, with approximately 3.4 million pensioners in the UK struggling financially, according to a report published by Age UK. So, what might help?

Unlocking housing wealth

Research by consumer group Fairer Finance suggests that some 51% of households aged 60 and over could benefit from accessing their housing wealth through later-life lending.

Indeed, the Financial Conduct Authority (FCA) raised this issue at its annual public meeting recently. ‘We need to find ways of unlocking housing wealth and getting over the scars of equity release of the past but also protecting against potential abuse by relatives of their elderly family members,’ says the FCA’s chief executive, Nikhil Rathi.

Steve Dale, MB Associates' Equity Release Specialist, says: 'With final salary pension schemes now a thing of the past, many people are now being left with a much lower income in retirement than they hoped for and therefore worrying about covering costs, when they should be enjoying the life they have worked for. Using housing wealth should now be part of retirement planning. With the right advice on Equity Release schemes, people can increase their income whilst retaining ownership of their home and still potentially leave something for their family.'

Who can benefit from later-life lending?

If you’re a homeowner and unsure whether your future pension will meet your lifestyle needs in later life (or if you’re already retired and facing financial strain), later-life lending could help unlock your housing wealth and provide financial security in retirement.

While early equity release schemes in the 1980s and 1990s were largely unregulated and led to financial challenges, equity release has since evolved into a flexible, well-regulated option. While you should consider the implications for inheritance and interest, equity release could give you greater financial freedom in your later years and let you keep living in your family home, rather than downsizing to unlock your housing wealth.

It’s important to speak to an experienced equity release adviser to see whether equity release is right for you. Whenever you’re ready, we’re here to support you. Our Equity Release Specialist, Steve Dale, meets all of his clients in person at their premises. He is happy to help if you'd like a friendly initial conversation.

You can also download our free equity release guide.