40% Of Seniors Say Worse Off Than Five Years Ago
15 January 2008
New Zealand Seniors
40 Percent Say Worse Off Than Five Years Ago
Nearly 40% of seniors surveyed in New Zealand believe their financial position to be worse than five years ago.
Fifteen percent said they were significantly worse off in a survey undertaken towards the end of 2007 by 50+ community website www.grownups.co.nz and home equity release specialist Sentinel.
The biggest concerns in retirement were health (42%) and financial security (40%) with 39% considering their financial position to be worse than five years ago.
Only 12% of the 400 respondents felt their financial position was significantly better than in 2002.
Respondents were asked how they might relieve financial strain. More than 50 percent saw the equity in their home as a source of funds, either through downsizing or using an equity release product.
Just four percent would consider asking their family for help.
Sentinel Marketing Director Linda Taylor is unsurprised by the findings.
“New Zealand seniors have significant equity locked in their home. They also pride themselves on being independent. And while family are often willing to help, asking for that help can be very difficult, so downsizing or taking advantage of equity release are both valid options to investigate.”
“More than 40% said an equity release loan was a good idea for those who needed it, while 39% said they would consider an equity release loan in the future if the need arose,” Mrs Taylor said.
Mrs Taylor believes the survey findings show a growing understanding and acceptance of the advantages for older people in taking advantage of an equity release loan. Uses include travel, work on the house, healthcare and day-to-day expenses, with an increasing number of seniors wanting to help with expenses such as a grandchild’s education.