Many moons ago, I was a fresh-faced university student enjoying the time of my life in my newly-adopted city of Bristol. What a handsome place to live. Three years of study were supplemented with a wonderful array of extra-curricular activity comprising everything you would expect to be of interest to a young man living away from home for the first time, although this is not the place to get into too much detail.
I studied economic history, a topic I found especially interesting and compelling in equal measure (and still do). As part of the course, we were introduced to statistics by an enthusiastic lecturer who guided us through topics including the grammar of mathematical notation, frequency distribution, percentile ranks, standard deviation and a host of other subjects.
In truth, statistical theory could be a bit, ahem, dry; that was until the lecturer recommended a book which, he said, would prove pivotal to our understanding of how statistics were used and applied in everyday life, be that correctly or erroneously.
Published in 1954 and written by Darrell Huff, How to Lie with Statistics remains a cornerstone of undergraduates’ statistical knowledge, for it applies statistics to the real world and encourages a healthy cynicism, particularly when presented with graphic claims, often made by politicians who have never so much as picked up a copy of Huff’s timeless work.
Dependable statistics and their sources are usually deemed credible because their methods of preparation and objectivity have been established for decades; credible stats are not served to the public wrapped in a tawdry sales pitch.
Which brings me onto the Equity Release Council.
Speaking following publication of the Equity Release Council’s first quarter figures for 2026, chief executive Jim Boyd echoed what this column has been saying for several years: “Releasing equity will inevitably become a mainstream part of retirement planning as…retirement finance inadequacy worsens,” he said.
“Almost 38% of future retirees are on track to fall below the Pensions UK minimum standard,” added Mr Boyd, although, “the secure but flexible financing options provided by modern equity release products [are] increasingly attractive for consumers.”
The equity release market certainly felt the impact of global uncertainty during the early part of the year, with some people delaying their decision to release tax-free funds from their homes. However, the Council’s latest data continues to highlight the increasing popularity of equity release as more than half a billion pounds (£574m) was released from their property by almost 13,000 older homeowners between January and the end of March 2026.
Note the accurate use of statistics unaccompanied by wild claims that equity release will solve financial problems for the over-55s. In short, it won’t.
Research conducted by Loughborough University’s Centre for Research in Social Policy (CRSP) highlights the fact that a ‘minimum retirement lifestyle’ costs £13,900 a year for a one-person household and £22,500 for two people.
A ‘moderate lifestyle’ costs £32,700 for one person and £45,400 for two, while a ‘comfortable lifestyle’ costs £45,400 and £62,700 respectively.
Of course, using adjectives such as comfortable and moderate are understandably subjective, while the impact of income tax must be taken into account, particularly as the threshold for paying it will remain frozen for the foreseeable future – a cumbersome way of actually increasing tax without the Treasury declaring it.
Nonetheless, the CRSP benchmarks reflect, at least in part, the corrosive impact of inflation (as this column noted last week), resulting in higher everyday costs for basic foodstuffs, essential household bills and transport, as well as social activities and hobbies.
The CRSP data calculates that around eight in every ten members of the working population will reach the minimum standard of living in retirement. However, this falls to a shade over 2 in 10 reaching a moderate standard and only 9% enjoying a comfortable lifestyle, ie the one everyone wants. But how to achieve it and how much is enough to enjoy retirement?
The state pension continues to play a central role in retirement income. The 2026-27 full state pension of £12,548 a year forms a basic, but reliable, foundation for many households. For a large number of already retired or soon-to-be-retirees, there could be a need to supplement the state pension. For those without significant, easily-accessible savings, however, the equity release option is worthy of further investigation.
Equity release enables most older people to access the bricks-and-mortar wealth created by their property without needing to sell or move home. In effect, older homeowners may borrow against their homes without making repayments unless they choose to, using a ‘lifetime mortgage’, a financial product not dissimilar to a regular property mortgage. The lifetime mortgage, plus any accrued interest, are repaid when the homeowner(s) die or move into long-term residential care.
So, what does this have to do with statistics? Plenty.
You see, because the state pension is, effectively, a scheme funded by National Insurance Contributions, NOT a huge, adequately funded investment pot from which current pensions are drawn, it has been clear for almost two decades that: a) the retirement age will continue to rise, and b) the state pension will ultimately be means tested. These changes will affect millions of people as indisputable statistics show that the population will continue to age (between 2029-39, the number of citizens aged over 75 will grow by almost 2 million. Little wonder, then, that equity release is referred to as a mainstream financial product.
An increasing number of older homeowners are not waiting for either (a) or (b), above, preferring to unlock the equity built in their property, usually over many years, to increase their everyday budget by supplementing their retirement income. Such arrangements are likely to become the norm for millions of folks. Remember where you heard it first.
