The Government Should Consider Equity Release for Social Care
The issue of funding social support for the elderly is one that has been brought back into focus with the latest Government White Paper. It is also an issue that once again sees equity release championed as a potential option for the elderly needing care.
Further to this, the Bank of England this week reported that homeowners continue to invest back into their properties which could increase the amount of housing equity in the future. This could prove to be vital in using equity release as a future funding option for care.
“Equity Rich and Cash Poor”
Eddie Goldsmith, Senior Partner at Goldsmith Williams believes this could be a key reason why equity release might be relied upon for future social care funding. He said:
“With so many pensioners being equity rich and cash poor, it is inevitable that equity release will grow in popularity as a way to ensure a comfortable old age.”
However, he did go on to say that this should only be the case if quality, professional legal advice is available.
“However, financial advisers must ensure clients are given expert legal advice from lawyers who really understand the issues relating to equity release.”
“Over-65s currently share £907 billion worth of equity in their homes”
Safe Home Income Plans (SHIP) have long campaigned for better Government consideration towards equity release as a viable option to help fund social care. At the end of last month Andrea Rozario, Director General of SHIP, also commented on the White Paper saying:
“Between them the country’s over-65s currently share £907 billion worth of equity in their homes, yet some of these will be unaware that equity release could be used to fund domiciliary care. The Government should consider all retirement funding options, and raise awareness of equity release within these.”
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