Retiring Workers Could Turn To Equity Release

With equity release schemes proving popular with thousands of retired homeowners in the UK, more couples and individuals could be set to take out such a plan. This is after the Default Retirement Age was upheld by a High Court Judge despite protestations from Age Concern and Help The Aged.

As a result of this decision, numerous retirees may decide to benefit from an equity release scheme to help support their retirement. The set DFA of 65 years old will remain in law but is likely to be reviewed in 2010.

This decision could tempt many homeowners to look at alternative ways to support their lifestyle in retirement. An equity release plan has the ability to unlock a cash lump sum or regular payments to help you make the most of retirement.

Equity Release An Alternative To Help Fund Retirement

Despite the decision there are hopes that the ruling could be changed in 2010, as Andrew Harrop‚ Head of Public Policy at Age Concern and Help the Aged commented: “In his ruling the judge makes it clear that the only reason he has allowed the law to stand is because ministers have already caved in to our pressure for a review of the law.  He makes it clear that forced retirement at 65 is unsustainable.”

With 60% of over-50’s believing that they will have to work beyond their retirement to fund their lifestyle because of the state of the economy; an equity release plan could help.

Brendan Barber, Trade Union Congress general secretary, is quoted on Key Retirement Solutions saying: “The decision of the court will be a blow to working people who need, or want, to work on beyond 65.”

For no-obligation advice on whether equity release could help you and information on the best plans please call our 24 hour helpline and speak to one of our advisors:

Or use the comments box below to ask a question.

Equity Release may involve a Lifetime Mortgage or Home Reversion Plan. To understand the features and risks ask for a personalised illustration.

Age Partnership provides initial advice at no cost and without obligation. Only if you choose to proceed and your equity release case completes would a typical fee of 1.5% of the amount released or £795 be payable.

Important things to consider about equity release:

• Equity release could affect your current or future entitlement to means-tested benefits
• Releasing equity to spend in your lifetime can reduce the amount that is left in your estate when you pass away

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