Lower Incomes and Life Expectancy Could Increase Equity Release
The number of equity release schemes taken out in the future could rise considerably if plans to raise income tax are sustained. This, married with a continued rise in life expectancy levels could see equity release become a vital source to supplement income in retirement.
It is expected that the basic income tax rate will rise from 20p to 27p according to the National Institute of Economic and Social Research (NIESR). This will considerably hamper disposable income for employees and as a result affect savings for the future.
When this is added to the news from the Office for National Statistics (ONS) that people born between 2006 – 2008 are expected to live to 77.4 (men) 81.6 (women) additional finances in later years could be required.
Equity Release an Option in Retirement
One option for homeowners approaching retirement could be to take out an equity release plan. Equity release has the potential to unlock a lump sum or regular payments to supplement income and afford you the chance to enjoy your retirement fully.
There are a number of schemes available to customers with lifetime mortgages the most popular. In a modern market, equity release is seen by homeowners and their children as a means to let parents enjoy their retirement years.
With life expectancy estimated to grow and the potential impact of a rise in income tax likely to affect many families equity release could be the answer.
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