Is my house part of my pension?
It used to be that taking out Equity Release was a last resort for people wanting to raise money in retirement, in fact there was a sort of stigma attached to it.
Times are changing; the Government recognises that with increasing numbers of people needing to raise money in later life, they are looking to make Equity Release a mainstream tool when planning in retirement and want to find ways of making financial advice more accessible.
This isn’t surprising when you consider that the average house price is almost ten times the size of the average pensioner’s yearly income and has risen twice as fast in the last 20 years. *
Yet, many people are still not sure what Equity Release is, even less how it works. In a recent major study, 71% of people when questioned thought that the lender becomes the owner of your house when you take out Equity Release.50% of people thought that you had to make monthly repayments and 60% thought that there was a limit to the number of years you can stay in your home. In fact none of these statements is true.
If you think that you could benefit from raising money from your property but thought that it was only to be considered as a last resort, you might want to think again. Nobody thinks any the less of you for drawing your pension, so why shouldn’t you look at making your property work for you?
If you would like to discuss how to make your money go further in retirement, please contact us for more information.
*Source The Equity Release Council Feb 2017