Equity release a “feasible option”

Equity release has been described as a “feasible option” for some pensioners by a banking expert.

David Black, a consultant at Defaqto, claims that it should be considered as a source of income for retired people.

It comes after a guide published by watchdog Which? advised that equity release should only be used as a last resort.

However, Mr Black disagrees with this view, partly due to the onset of the economic slowdown.

“In an age of financial shocks, inadequate pension provision … and burgeoning levels of personal debt, it seems somewhat hasty to arbitrarily downgrade one of the possible solutions,” he remarked.

He added that the merits of all available options should be considered by people deciding what to do after the age of retirement.

Meanwhile, Saga stated that equity release can offer pensioners flexibility – yet they should seek financial advice before committing to anything, it suggested.