We have lived through a time of great change in terms of property ownership in the UK. Many people now at retirement age have an unencumbered property, however they also may have children in middle age who have substantial property interests of their own. These children are in many cases more than happy for the parents to use Equity Release to fund their retirement as the quality of life for their parents is of greater importance than inheritance of the family property.
As we find ourselves in unchartered political waters it is a welcome sign that all the major parties are in agreement about one major issue, that we as a country have to deal with the income gap in retirement. Another agreement is that unfortunately this is not about to change in a positive way in the near future. There is a positive in this, it is that we are all living longer. However living longer in poverty is no fun. That is why it is imperative that people utilise all types of planning for retirement, pre, post and at retirement.
People should fund their pensions as much as possible, they should utilise the open market option when buying an annuity and in retirement they should explore whether an equity release plan is a tool that is right for them. There is a requirement to raise the profile of Equity Release in relation to income shortfall. There are many people out there who are sitting in their only asset and not using it. There has been a shift in consumer perception of their property. There are still those who would never consider Equity Release as they want to leave the property to their dependants, however this is changing. People are becoming more open to using their property to raise capital or provide an income.
Mick Bradley