Releasing equity from a parents' home could fund the cost of care for half of UK adult children, research from Liverpool Victoria (LV=) has revealed.
According to LV=, the average cost of caring for an elderly parent now stands at £132,500, which is why so many would turn to equity release to fund such huge costs.
The study found that, based on the average savings account balance of £8,000, adult children would be able to fund elderly parents care in a residential care home for just 17 weeks.
As a result, 50 per cent of UK adult children said that their parents would release equity from their property to pay for care bills.
Commenting, Mike Rogers, group chief executive of LV= said: "Releasing equity from an elderly parent's home can provide relief from the burden of financing care, and increase the options for elderly people to plan ahead.
"An appropriate equity release product with full family support and understanding could also potentially enable an elderly parent to have alterations made to their home to enable them to live independently for longer."
However, Mr Rogers highlighted the importance of seeking equity release advice before taking such steps. He added:
"Releasing a sum of £26,000 from a property could help fund four years' worth of home care, with a carer visiting for two hours each day to help with domestic tasks and personal care.
"This could be invaluable if this kind of professional care is required and makes better economic as well as emotional sense, compared with the alternative of selling the property to help fund the care."
Get equity release quotes and advice »
© Fair Investment Company Ltd