Releasing funds from a property is becoming an increasingly important method of raising cash for older people in the wake of the economic downturn, it has been noted.
Alex Edmans, an advisor from Saga Personal Finance, said that equity release schemes are a significant option for people to consider when they retire.
“Property is often someone’s single largest asset, but is frequently overlooked when planning for retirement,” he explained.
He urged people thinking of embarking on an equity release plan to seek debt advice before doing so, but added that with the appropriate guidance, the strategy could be the “right solution” for some homeowners.
Drawing out the money built up in a house can help some individuals to enjoy a “comfortable” retirement, Mr Edmans stated.
Recently, research from Key Retirement Solutions found that home improvements are the most popular reason for people to take out an equity release plan.
By Jamie Price