For many of those coming up to retirement age,is playing a huge part in their lives, at least for those who understand how the sector works. Andrea Rozario, Director General of the Equity Release Trade Body, Safe Home Income Plans (SHIP), has reported that this year started out great for the market and the profile of equity release is growing, which has led to optimism in the sector.
There has been an increase in the awareness of finance when it comes to retirement due to the fact that people are living to an older age, putting pressure on the pension system and leaving some coming up to retirement age having to find an income.
More Interest in Equity Release
The recent budget will have an impact on those of retirement age which is likely to cause even more interest in equity release. One of the biggest announcements to affect those of retirement age was the reform of the pensions system for those retiring in the future.
This was to provide simple flat rate support that was contributory above the means tested guarantee credit, along with a proposal to manage increases in the future State Pension Age to counteract the increase in longevity.
The Treasury is also backing these changes. If the proposals go ahead those coming up to retirement would have to consider how to make up the shortfall and one of the ways is to take cash from the equity in their property.
However, there have been many misconceptions about releasing equity which has brought about the need to make the sector more transparent and slowly this is happening and homeowners are being given suitable advice and information.