Around a third of over-55s with a private pension are considering releasing equity from their main home to help fund their retirement, according to Canada Life.

The financial services giant says its survey shows that 30% of this group nearing retirement are weighing up using their homes to provide cash once they stop work.

It adds that over-55s with higher value pension pots are more likely than those with lower value pots to release equity from their homes.

The firm says that 42% of people with pots of more than £200,000 are more likely to consider release equity than those with pots valued at less than £200,000, where 27% are looking at this option.

It also found that 35% of over-55s on higher incomes, of £50,000 or higher, are more likely to consider equity release, compared to 22% of those earning less than £20,000, and 33% of those earning between £20,000 and £50,000.

Canada Life head of marketing for insurance Alice Watson: “Retirement journeys are becoming more complex. Fewer people are retiring on generous final salary pensions while more people are saving later in life or renting for longer.

“These demographic changes mean that more people are likely to turn to their property to help them support their retirement aspirations.

“Modern equity release products have the flexibility and accessibility which families and homeowners are looking for in order to enjoy their hard-earned retirements comfortably.

“However equity release is a lifelong financial decision so it is essential that people seek quality financial advice and talk through their decision with loved ones before agreeing to a product.”

Canada Life commissioned data group Opinium to contact 506 British adults, aged 55 or over, with a defined contribution pension, who were not yet taking an income, between 15 and 26 October 2021.