Equity Release Could Help Concerned Retirees
According to new research, 61% of people approaching retirement in 2010 don’t believe that pensions and savings will provide a sufficient amount to be able to enjoy retirement. Homeowners amongst that percentage may consider an equity release scheme to help supplement income.
The research conducted by Prudential highlighted that people approaching retirement in 2010 expected to have an average salary of £16,509 per year, which is 7% down on estimates in 2009. Furthermore, this is 11.5% down on 2008’s forecasts which saw people expect to have £18,663 a year.
Equity Release Could Make Up For Rising Cost of Living
For those worried about not having enough in retirement, an equity release scheme has the potential to unlock a tax-free lump sum. It could also be a viable option for people citing not having enough money in retirement as their primary concern. A separate Prudential report showed that 55% of people retiring in 2010 saw this as their primary concern, whereas 51% are worried about the rising cost of living.
Equity release could help these future retirees enjoy the kind of lifestyle they want after investing so much in their property.
Andrea Rosario, director general of Safe Home Income Plans (SHIP), recently said that “between them the country’s over-65s currently share £907 billion worth of equity in their homes” when talking in relation to the Government’s White Paper.
With so much housing equity available, an equity release scheme could allow some of these concerned retirees enjoy a stress-free retirement.
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