Reflections on the implications of equity release to self-fund ageing in Britain

Article

DUBUC, Sylvie

Population ageing increases the pressure on public finances. In the current political climate of austerity, welfare state retraction, and the marketization of care, equity release may seem an appealing option to policy makers to fund ageing, an increasingly pressing problem in many societies. Equity release financial products allow older homeowners to use part of the wealth tied up in their home, while delaying repayment until death. Analyzing the case of the UK, this paper describes and explains the equity release market and products, the social diversity of equity release customers, and their geographical concentration in high housing value regions. The implications of “mainstreaming” self-funded ageing costs through one’s housing wealth are discussed. The analysis challenges the argument of intergenerational fairness and uncovers the high risk of reinforcing social and geographical inequality. Conclusions and recommendations may guide future research and policy in and beyond the UK.

https://www.cairn.info/revue-gerontologie-et-societe-2021-2-page-Ic.htm

Voir la revue «Gérontologie et société, 43»

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