Equity Release or Pension Release?

Like Pension Release, Equity Release is often considered a “last resort” option. Your pension and your home are probably your two biggest financial assets, and you’ve spent many years investing your money in them. The last thing you want to do is reduce their value, or put them at risk, but sometimes people are in a situation where they need to consider the options of last resort.

If you want to find out more about your Pension Release options, fill in our enquiry form to book a free phone call. If you want to find out more about Equity Release, James Coney at ThisisMoney.co.uk wrote a good introductory article.

He makes the point that while Equity Release may make you feel very unconfortable, it may be a better option than poverty (edited highlights below) –

“Figures from the Office for National Statistics show there are an estimated two million pensioners living below the breadline… With pension payouts falling and fuel and food bills rising, the number of poor pensioners are only going to increase, particularly as the sources of income we use to fund our retirement have changed.

Just 120,000 pensioners have released equity from their home. I wonder how many of those two million pensioners living below the breadline are sitting in homes worth tens, if not hundreds, of thousands of pounds? According to insurer Aviva, the over-55s have £1.9 trillion of equity.

But equity release, done right, is an efficient way of taking money from your home. It shouldn’t leave your family struggling with a debt they can’t afford to repay after you have gone.

Rates are under 7 per cent — certainly few banks would be prepared to offer a personal loan to a pensioner at that price.

If you want a dream holiday, new car or are simply worried about day-to-day expenditure, there are no cheaper options.”

If you are considering Equity Release as an option, the article is a good read. And check out some of the links in the article to other information about Equity Release on their website.

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