SHIP Express Disappointment That Equity Release Benefits Overlooked
The issue of care for the elderly has once again caught the attention of Safe Home Income Plans (SHIP) who feel that equity release has been overlooked by the Government in their Green Paper consultation.
Concerns are mounting that a rising elderly population will struggle to sufficiently support themselves by affording the appropriate care. SHIP, who are advocates for the use of equity release, believe this to be a financially viable solution that could reduce the numbers of elderly homeowners having to sell their property to finance care.
Equity Release Could Help Elderly Homeowners Keep Their House
Rather than having to sell their property, older homeowners could instead make the most of an equity release plan, which could unlock a lump sum or regular payments to supplement pensions or income in retirement. This would go some way to managing the growing need to house elderly people.
Andrea Rozario, director general of SHIP, said: “We are also pleased that they have decided not to significantly increase the tax burden on all UK citizens as the population is rapidly ageing.
“However, while we agree that the system needs a review, we do not necessarily agree that the Green Paper provides a comprehensive overview of funding options - including equity release. Under the current system with its maximum asset limits, some older people have been forced to sell their homes in order to fund their care needs.
80% Of UK Wealth Owned By Older Generation – Equity Release Could Unlock This
Ms Rozario continued by saying: “80% of the UK’s wealth is held by the older generation and by providing them with this choice (equity release) it not only allows them to make use of what is likely to be their largest asset, but also gives them a wider choice of care option.
“We hope that the Government will take this opportunity to work with the private sector to develop workable solutions to the very real care funding crisis the country faces.”
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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