Equity release 'may boost retirement income'
28.08.2008
People concerned about the level of income they are in line to receive when they retire may benefit from equity release schemes, it has been claimed.
Fair Investment Company explained that homeowners can take out a loan against their property in order to raise funds for their retirement.
According to Sharon Bratley, chartered financial planner at Fair Investment, there has been growing interest in such loans due to the uncertain financial climate.
"Pensioners are finding it tough and releasing equity from property may be the only way to survive through retirement," Ms Bratley stated.
However, choosing to take out a loan on a property is a major decision so people ought to seek financial advice first, she added.
This week, Prudential estimated that homeowners over the age of 65 have more than £700 billion of equity in their homes.
Of this, 40 per cent belongs to people living in the south-east of England and London.
Fair Investment Company explained that homeowners can take out a loan against their property in order to raise funds for their retirement.
According to Sharon Bratley, chartered financial planner at Fair Investment, there has been growing interest in such loans due to the uncertain financial climate.
"Pensioners are finding it tough and releasing equity from property may be the only way to survive through retirement," Ms Bratley stated.
However, choosing to take out a loan on a property is a major decision so people ought to seek financial advice first, she added.
This week, Prudential estimated that homeowners over the age of 65 have more than £700 billion of equity in their homes.
Of this, 40 per cent belongs to people living in the south-east of England and London.