Fairer Finance has called on ministers to help normalise using equity release as part of retirement planning as it presented new research to economic secretary to the Treasury Lucy Rigby at a Westminster briefing today.

The consumer group says urgent action is needed to help millions of older homeowners facing retirement income shortfalls consider their property wealth alongside pensions and other savings.

Its Retirement Compass later life finance index found that 3.7 million homeowner households aged 55 to 79, or 46% of homeowners in that age group, will have a retirement income below the Pensions UK “moderate” living standard.

This includes 1.4 million single women, 600,000 single men and 1.7 million couples.

Fairer Finance says significant numbers could improve their retirement living standards by using equity release to supplement pension income.

The research also found attitudes towards borrowing in later life are changing, with 52% of homeowners aged 55 to 79 saying it is acceptable to have a mortgage in later life.

Single women accounted for 32% of new equity release plans in the second half of 2025, almost double the 18% taken out by single men, with the remainder taken out by couples.

The research found 65% of single female homeowner households aged 55 to 79 were below the Pensions UK moderate retirement living standard of £31,700 a year, compared with 44% of single male households.

Despite this, the two groups held similar levels of housing wealth, averaging around £225,000.

Of the 1.4 million single female homeowners aged 55 to 79 whose retirement income is set to fall below the “moderate” standard, around 700,000 have between £200,000 and £400,000 of housing wealth and 200,000 have at least £400,000.

Single women were also more likely to be older when taking out equity release. While 11% of all new plan customers were aged 80 or over, this rose to 18% among single women.

The report also highlights regional differences in attitudes towards housing wealth.

Among homeowners with a retirement income shortfall, 43% of those in the South said they would be likely to explore downsizing, compared with 36% in the Midlands and 29% in the North.

Some 16% of those in the South would consider equity release, compared with 13% in the Midlands and 11% in the North.

Care costs were among the main reasons homeowners might access property wealth.

A quarter of homeowners aged 55 to 79 said they would consider using housing wealth to pay for care at home, while 24% would use it to boost pension income and savings.

A further 16% would use the money for home adaptations and the same proportion for care home fees.

Fairer Finance is calling on the government to deliver more suitable retirement housing, lower stamp duty costs for downsizers and work towards greater integration of pension and housing wealth in financial planning.

Fairer Finance managing director James Daley says: “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.

“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.

“But there remain both structural and behavioural barriers that are preventing more people taking advantage of this store of wealth.”

Equity Release Council chief executive Jim Boyd adds: “The report shows it is no longer sustainable to plan for later life through the narrow lens of traditional pensions.

“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.

“However, unlocking this potential safely requires breaking down traditional advice silos and guaranteeing access to exceptional high-quality professional advice.”

Key Equity Release chief executive Will Hale says: “Fairer Finance’s recommendations from last year remain highly relevant and there should be renewed focus on implementing them.

“In particular, we need greater public awareness and improved signposting to help people understand how housing wealth can support retirement outcomes, alongside pensions, savings and other assets and how to access appropriate advice.

“Breaking down the traditional silos between pensions, mainstream mortgages and later life lending will help ensure consumers receive holistic advice that considers their full financial position.”