Can Equity Release Help Unemployed Over-55’s?

The amount of over-50’s in long-term unemployment has risen by 50% over the past year to take it to a ten-year high. However, as many homeowners over 55-years-old continue to struggle with the recession, an equity release scheme could provide them with the access to much needed funds.

According to Age UK, the recession has had a major impact on the job market, with over-50’s seemingly coming out the worse. Yet, those that are over 55-years-old and own their home might consider an equity release scheme.

Coping With the Cost of Daily Living

Releasing equity allows homeowners to access a tax-free lump sum from the value of their property. This money can be put towards whatever they want. In the case of unemployed over-55-year-olds, this might be just managing the daily living costs whilst hunting for new employment.

Michelle Mitchell, Age UK director, said: “This is the highest level of long-term unemployment among over-50s that we have seen in a decade.

“If hundreds of thousands of 50-plus workers remain stuck in long-term unemployment, the government’s plans to ‘reinvigorate’ retirement and extend working lives will remain a hollow soundbite for many people.”

Whilst returning to employment will be the main priority for many of the over-55’s out of work, releasing equity could ensure they don’t have to struggle whilst job-hunting.

Related posts:

1. Fixed Retirement Age Won’t Restrict Employees Anymore
2. Equity Release Affected By and Affects the Economy
3. More People Working Beyond 65 Years Old
4. Rising Debt Makes Equity Release Schemes More Relevant