Equity release ‘can play a role in retirement finance’

Posted 18/11/2009

A financial solutions firm has underlined the potentially important role that equity release can play in augmenting the retirement finances of older people.

Just Retirement has suggested that releasing equity is set to play an increasingly key role in older consumers’ financial planning, as many are beginning to experience increasing problems with money as they grow older.

This is because many have failed to plan adequately for their retirement years in advance, with this financial difficulty being increased by the fact that life expectancy remains on the increase.

The comments come after shadow minister for pensions Nigel Waterson suggested that better understanding of equity release options would allow many older people to afford their living expenses more easily.

Scott Fulton, head of external relations at Just Retirement, welcomed Mr Waterson’s comments, saying that such endorsements “can go a long way in helping pensioners bolster their income in retirement”.

Earlier this week, research from Key Retirement Solutions suggested that the incentives that many equity release plans offer to families are making them more popular among parents.