A Longer Life, a New Plan: How Equity Release is Powering Later Life Choices

With average life expectancy at retirement currently around 18 years for men and 20 for women, pensions are required to last longer than ever before. These figures are just averages – many retirees will live significantly longer, which brings new financial challenges that advisers must address.

Increased Pressure on Retirement Income

This is placing increased pressure on retirement income, with a typical client pension pot now needing to stretch across two decades or more. This pressure is particularly felt by those choosing to retire before state pension age (currently 67 in the UK).

Changes in the types of pensions offered are also increasing this pressure. Many employers have moved away from guaranteed income pensions (Defined Benefit plans) to defined contribution (DC) schemes to save costs. This means that individuals need to take greater personal responsibility for funding their retirement, and in some cases, the income generated from DC schemes is falling short of what’s required to maintain a comfortable lifestyle in later life. Unlike DB pensions, which provide a predictable, lifelong income, DC schemes expose individuals to market fluctuations, inflation risk, and the challenge of ensuring their pot lasts as long as they do.

How Equity Release Can Help Bridge Pension Gaps

Retirement planning must now account for extended income needs, with pension pots no longer always enough to fund later life. As a result, more clients are seeking alternative sources of financial stability and for many, their property is the most valuable and reliable asset they own. This shift is making equity release an increasingly relevant option in holistic retirement planning. As of April 2025, a record £2.89 trillion in housing wealth is held by UK homeowners aged 60 plus. 

By helping clients understand how housing wealth can supplement or even safeguard their retirement, financial advisers are playing a pivotal role in bridging the growing gap between retirement expectations and financial reality. Equity release is no longer a niche product – it’s now considered a valuable financial tool for older homeowners. Additionally, clients will be able to remain within the home they love, whilst releasing equity from the property.

Your Trusted Partner for Equity Release

You don’t have to be an equity release expert to include it in your planning conversations with clients. As an adviser, you’re ideally placed to identify when it could benefit a client and refer them to a trusted expert. It’s easy to work with a trusted equity release referral partner like Key Partnerships, all you need to do is identify opportunities within your client bank, make a referral and then we will do the rest – ensuring you remain compliant.

What’s more, you will earn a referral fee from each successful case that completes. Last year the average fee paid per completed case was £1,646, meaning if one referral were to complete a month, you could earn £19,752 additional revenue in 12 months.

Learn more about working with Key Partnerships and how we could help you to grow your business, whilst helping your clients.