Unlocking housing wealth in retirement? Evidence on consumer preferences for home equity release products

Population ageing and growing pressure on retirement systems are increasing interest in housing wealth as a potential source of retirement financing. Home equity release products, such as home annuities and reverse mortgages, could help older households unlock housing wealth while continuing to live in their homes. Yet little is known about how consumers evaluate these products. Using evidence from a survey experiment, we study preferences for different home equity release options and the choice not to use any financial product. We find that the majority of participants prefer not to release housing wealth. Among those choosing an equity release product, home annuities are preferred over reverse mortgages. The way the options are presented does not significantly affect product choices. Instead, decisions are mainly driven by individual characteristics, particularly risk tolerance, bequest motives, and financial literacy. The findings highlight the importance of financial education, transparent product design, and consumer protection in supporting informed retirement decisions.

Kirschenmann, Karolin and Caroline Knebel-Seitz (2026), Unlocking housing wealth in retirement? Evidence on consumer preferences for home equity release products , SUERF Policy Brief, Vienna