Equity release could help fund retirement says Saga

11 March 2009 / by Rebecca Sargent

As interest rates fall, bringing the value of investments and pensions down with them, equity release could help fund retirement for many, according to Saga, the over 50s experts.

The research from Saga shows how equity release could prove a valid option for those whose pension and investment funds have fallen as a result of the recession.

The research also shows that downsizing, which is another funding option open to homeowners of retirement age, is a less popular option, as the study found that 89 per cent of over 50s see their home as more than just bricks and mortar, and almost half said it is where they want to grow old.

The study also found that, contrary to popular belief, less than one in 10 of the over 50s said they would not take out an equity release product because they believe the home should be for the children to inherit.

In fact, the study found that many over 50s are considering using the equity in their homes to enhance the quality of their retirement, regardless of any expectations of inheritance from younger relatives.

Alex Edmans, business development manager at Saga said: "Saga's research highlights that over 50s do not just view their properties as a house but as a home.

"With a lifetime of fond memories from within their family homes they would not want to be forced to move for financial reasons. This presents a very real need for people to seek expert financial advice to review how best to stay in their home but still access the equity that they require from it.

"Equity release plans can work very well for many in these circumstances as they will allow you to release the capital required and give you the security that you can remain in your home for the rest of your life."

Learn more about releasing equity from your home with our free guide to equity release and equity release FAQs.

© Fair Investment Company Ltd