New research from Newcastle Building Society show that only 9% of the UK’s over 55s would consider equity release. Around a third of people surveyed are going to be dependant upon the state pension and have not considered equity release.
Equity release does still have a rather poor reputation but if you have no other means to fund retirement why on earth would you not do it? I can fully understand only considering it as a last resort but to refuse to use your only remaining asset to fund your retirement is, in my opinion, being overly cautious.
I’ve spent many many hours investigating various equity release issues, bad press and case studies and I do believe that there is nothing to fear if you have a good, honest financial adviser to help you. The original scandals were the result of poor products and poor advice. The industry has addressed the poor products so your right to continue living in your own home is protected and interest rates continue to improve. And now that the FSA regulates equity release you should be protected from poor advice too.
For those surviving on a state pension I think it’s time to consider equity release and an improved lifestyle.