Equity release to maintain standard of living

Homeowners may want to take out a home reversion plan or lifetime mortgage after it was revealed that the latest inflation increase means that their costs will increase by £800 this year.

MGM Advantage calculated that a household where the main occupant is between 65 and 74 would need to spend £23,000 this year to keep the same living standards as 2008.

Taking out an equity release scheme would certainly help bring income up towards this figure.

For people aged 75 and over, MGM Advantage estimate that they will need to spend over £13,000 (£13,150) this year to meet 2008 standards – up £400.

The firm's Sales and Marketing Director, Aston Goodey, remarks: "Inflation is a real menace and it is pushing up the cost of living.

This is particularly difficult for retired households where they often have fixed incomes."

He goes on to mention that homeowners now need "take more proactive steps" to maintain their standard of living.

The views expressed in these videos are those of ReelContent alone. They may not represent the views or opinions of Age Partnership or its staff. RealContent acts in a journalistic capacity and is not authorised to give advice under the Financial Services and Markets Act 2000. The information contained in this video is intended for information and interest only, and not to either provide advice to, or to address the particular requirements of any individual.