Guides

Is My House Part Of My Pension?

Author's Avatar
Author: Phil Scott - Director
Last updated: 12 Oct 2024
Is my house part of my pension? | A large countryside house with white walls, wood beans and a red tiled roof

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.

But times are changing. The Government recognises that public purse strings are getting ever tighter while increasing numbers of people need an alternative income or a way to raise money in later life. So, they are looking to make Equity Release an easy and normal resource for planning your finances 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*. Many people are sitting on a lot more wealth than they realise or would have anticipated, and they can put to good use.

Don’t Be in the Dark About Your Money

However, 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 are 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 a no-obligation chat.

*Source: The Equity Release Council Feb 2017

Thinking About Equity Release?


Get in touch with your local office and speak to one of our experienced advisors. They will be more than happy to hear about what you need and go over all the details. Equity Release doesn’t have to be complicated. Let us do the hard work for you. Contact us today for an initial, no-obligation chat.

Speak to an Expert
Back to Guides
Author's Avatar

Phil Scott

Director

About the author

Phil has worked in the financial services industry since 1992, having started with a large insurance company. He went self employed in 1996 as an Independent Financial Adviser before setting up his first company, Needham Market Home Financial in 1999.

After four years, he decided to concentrate solely on mortgages and related insurances, and The Mortgage Centres was born. Since then, Phil has been influential in the opening of several new offices as the business continues to grow.

Qualifications

Financial Planning Certificate: 1,2 & 3

Year Attained: 1992

Certificate in Mortgage Advice and Practice (CEMAP)

Year Attained: 2001

FCA Profile

Share