Equity release to ease inflation squeeze

More people aged between 50 and 64 may well be considering an equity release scheme, as inflation is squeezing their spending power more than any other age group.

Figures from the Alliance Trust show that the age group is effectively paying a 5 per cent interest rate, higher than the actual rate of 3.7 per cent.

One of the key factors in the difference is the ongoing price of petrol. This age group spends more of its money on fuel than any other, meaning it has been particularly stung by the 25 per cent rise in cost over the last year.

50-64 year olds could give themselves more financial freedom by taking out a home reversion plan or lifetime mortgage, as equity release gives them some of their home's value whilst they still live there, so there's no need to sell up.

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