Retirement care can be helped through equity release, claims expert

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Retirement care can be helped through equity release, claims expert

Wed 31st Aug 2011

Equity release can offer a cheaper and more flexible way to pay for retirement costs, an expert has claimed.

Independent financial advisor David Penny claimed that equity release is increasingly being used in varying degrees by people wanting to fund their retirement but who are put off by the cost of living in a residential home.

Mr Penny, the managing director of advisory service Invest Southwest, said that even if funds run out after equity has been released, "the loan is simply cleared as a part of the house sale process".

"Not having the stress of moving can undoubtedly extend a person's life. Care in the home can be less expensive than living in a residential home," he added.

Meanwhile, Karen Barrett of advice website unbiased.co.uk recently cautioned against making any rash decisions when it comes to securing a new loan against the value of a property.

While admitting that equity release is an attractive option for many, she said it is also vital to consult as many interested parties as possible who might have a stake or role to play in a person's retirement plans, such as children.

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