Norwich Union has slashed the minimum age from 60 to 55 on its new index-linked equity release plan ...
Norwich Union has slashed the minimum age from 60 to 55 on its new index-linked equity release plan in a bid to make equity release more accessible.
The new product, only available through IFAs, is linked to the retail prices index, which has a safety barrier in the form of a maximum rate of interest of 10.14%. There is a minimum rate of 4.89%.
Daren Carter, head of equity release marketing at Norwich Union, said: 'Equity release is a key part of financial planning for retirement, but by introducing a minimum age of 55 we aim to help IFAs develop the pre-retirement market as well. People are realising it is a valid and effective way of making the most of their home.'
Mark King, managing director at Crown Equity Release says that although Crown will not be reducing its age limit from 60, other groups could follow in Norwich Union's footsteps.
He said: 'With low interest rates, we will see more of this. People are taking earlier retirement, annuity rates are low and pension pots are not as big as people originally thought.'
