Equity Release Could Help Retired Homeowners Support Children
New research from Aviva suggests that 18% of parents approaching retirement expect to continue to have to help their adult children in the future. This has led to 39% of adult children worrying about how their parents will cope in retirement.
Equity release could be one financial option that will allow parents to help their children, or grandchildren, without impacting too much on their quality of life in retirement.
“The Financial Landscape has Massively Changed”
The age of expectancy on parents continues amid the unstable economic climate. The chief reason that many adult children will continue to turn to the bank of mum and dad is to put a deposit down on a home. Almost two thirds (62%) of parents expect to have to help out their adult children with this whilst 47% believe they will have to help fund their grandchildren’s upbringing.
Clive Bolton, ‘at retirement’ director for Aviva said: “The financial landscape and the pressures on the modern family have massively changed over the last decade, as has the profile of a ‘typical’ retiree. Rather than inheriting from their parents, our research suggests many adult children now expect financial help from their parents at a time of life when they may struggle to give it. By discussing plans sooner rather than later, families can avoid confusion and disappointment later on.”
An equity release scheme has the potential to unlock a tax-free lump sum from the value of a property to supplement income in retirement. The money released from a typical equity release scheme can be put towards anything, including helping out family.
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