Equity Release Could Help Homeowners Working an Extra Year
Following the Queen’s Speech this week (25 May 2010) many experts suggested that the age when people can claim a state pension could rise to 70 years-old, much sooner. This could see some homeowners turning to equity release.
Furthermore, for some four million people currently working, they might have to wait until they are 66 before they can retire. This is because the Conservatives have pledged to bring the dates for this increase in age forward to 2016 for men and 2020 for women.
Relying on Equity Release
Although many people will, in the future, be working well beyond the current retirement age of 65 years-old, funding a retirement will still be important. Plus many people may be keen to start enjoying their elder years earlier if they are still required to work. By using equity release, homeowners can unlock a lump sum from the value of their property to spend on whatever they wish.
However, there is some confusion about the relationship between equity release and state benefits, which is why Safe Home Income Plans (SHIP) is currently trying to improve this. Producing greater clarity between the two might take on greater importance with the retirement age being put back sooner.
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