A quarter (24%) of people who have not yet retired, would rather unlock equity from their property than use their pension pot to pay for care costs in later life, Canada Life has found.
Some 5% fewer expect to use their pension rather than their property, compared to 2016.
In addition, the number of people who do not know how they will pay for future long-term care needs has increased by 6% from 18% in 2016 to 24% now.
Alice Watson (pictured), head of marketing and communications at Canada Life Home Finance, said: “With the future of long-term care in the UK still not clear, people who view their wealth holistically are increasing their ability to fund later-life care options.
“These findings are a real vote of confidence in the home finance industry: consumers are clearly attracted to the flexibility and security offered by later life mortgages.”
There was £382bn worth of equity contained within UK homes by the end of Q2.
Two in five (40%) people think they are likely to release cash from their property in the future and more people want to continue living in their current property as they get older, rising by 3% to 85%.
Watson added: “We know how much people value being able to live in the comfort and familiarity of their home.
“When care provision is in question, the disruption and emotion of someone having to leave their home is best avoided if at all possible. With lifetime mortgages, homeowners can age in place, while accessing the cash that will allow them to fund care solutions for them or their loved ones.
“These findings are significant because they reflect the views of those soon to enter retirement, many of whom will be contemplating some of the challenges later life may bring.
“It is really important that people speak to an independent financial adviser when deciding whether to use equity release to pay for care costs.”