| The current recessionary climate has encouraged | | | | Whilst, a lifetime mortgage allows you to retain full |
| people to think seriously about their long-term | | | | ownership of the property and borrow against the |
| financial well-being and retirement planning; and not | | | | value of the property. And when the house is |
| before time. | | | | eventuality sold, the lifetime mortgage provider is |
| Recent research has revealed that many adults from | | | | then repaid. |
| all walks of life face future financial hardship unless | | | | For those people considering equity release, whether |
| they seriously start to plan ahead. Moreover, over | | | | a home reversion or lifetime mortgage, it is essential |
| one in ten adults expect to delay their retirement by | | | | that they seek independent financial advice. They |
| as much as five years. In addition, 41 percent of | | | | would also be wise to consider equity release plans |
| those adults over-55 would be delaying their | | | | from members of the industry body, SHIP, which |
| retirement. | | | | represents the majority of all equity release |
| Financial pressures are growing for the millions of | | | | providers. |
| retired pensioners who, despite their retirement | | | | Increasing numbers realise that this is a feasible way |
| planning, still struggle to meet increasing day-to-day | | | | to get the most from their retirement planning. A |
| living costs. | | | | recent equity release study showed that, when |
| The need for financial advice has never been greater, | | | | consumers were asked who they would turn to for |
| yet a worrying number of people are putting their | | | | advice if considering equity release - perhaps |
| heads in the sand over retirement planning. Further | | | | surprisingly - building societies and banks were cited |
| studies carried out revealed that more than half of | | | | as the most popular source of advice. Solicitors came |
| adults in Britain have never sought advice from a | | | | a close second, followed by financial advisers and |
| financial adviser, whilst one in eight relied only on | | | | accountants. Interestingly, solicitors are more highly |
| family and friends for advice. | | | | favoured by women than men, whilst accountants |
| This is a worrying trend, given that current economic | | | | are preferred by men more than women. |
| woes are set to spark a growth in the number of | | | | The recent equity release study also showed that |
| retirees turning to equity release to supplement their | | | | the majority of people prefer to seek advice |
| pension. As such, there are two main ways of using | | | | face-to-face, with over half of all consumers |
| equity release: by incorporating a home reversion plan | | | | surveyed preferring to receive this advice in an office |
| or lifetime mortgage into their retirement planning, | | | | rather than at home. Only an extremely small |
| additional income can be accessed by homeowners | | | | proportion chose to be given advice over the phone. |
| and used for all sorts of purposes. | | | | As we see growing numbers of people incorporating |
| Home reversion plans work by allowing you to sell all | | | | equity release into their retirement planning - through |
| or part of your home to a home reversion provider | | | | home reversion and lifetime mortgages - it is |
| in return for a cash lump sum or a monthly income. | | | | important that they consider seeking financial advice |
| What's more, there is a guarantee that you can stay | | | | from a suitably qualified equity release specialist. |
| in your home until you move out or pass away. | | | | |