An Exploration of the Role of Housing Equity as a Supplement to Retirement Income

Abstract

This paper explores the issues involving the use of equity in residential property as a source of supplementary income for the elderly (retirees and soon to be retired) in Ireland. Three focus groups were conducted to generate primary data. The research draws on the behavioural life-cycle hypothesis as an underpinning theory. The findings indicate that there seems to be a nascent interest in housing equity withdrawal among the elderly Irish. In terms of the different means of releasing housing equity, downsizing and rent-a-room appear to be the preferred choices, along with the use of equity release schemes (ERS) as a next preferred alternative. Furthermore, leaving a bequest is considered desirable but not necessary. These results contribute to the framing of public policy regarding retirement income.