Fund Your Retirement with Equity Release

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We compare the benefits of equity release when compared with the typical limited retirement options. Find out how equity release can liberate your financial life and free you from worry. 

Can't wait to find out how much you could release? Use our handy calculator now.

When it comes to funding your retirement, traditionally, options are limited and many people find themselves left with essentially only two choices for income; the state pension or any personal savings and investments that may have been accumulated from a previous working life.

However, if you own your home, you possess a potential source of income - which has been increasing significantly in value throughout the years - and is often overlooked. The rise in property prices mean that for many people their home is also their biggest financial asset.

Andrew Tully, pensions technical director at Retirement Advantage, says: 'There is a huge gap between what we want in retirement and what our pensions alone will be able to fund.

'We need to break down the long-held views that we do one thing with our pension and ISAs and something different with our property, and instead consider how they can work together to generate an income in retirement.

'Too many people are missing out on the retirement they want and deserve because they’re unaware of all the options available to them.”

The most recent figures from Halifax show the average house price in the UK is just under £220,000. As a comparison, the average pension pot is worth £57,000, rising to £145,000 for those aged over 65.

So, how does equity release work?

The increase in house prices mean many people’s homes will be worth significantly more now than at the time of purchase. The size of the loan depends on the age of the homeowner and the total value of the property.

Equity release allows anyone aged 55 or older to borrow a portion of the total value of their home. The percentage you can borrow increases as you get older up to a maximum of approximately 60%. Using equity release might mean replacing one loan with another in a more manageable way.

As the interest is rolled up each year, the longer the equity release plan runs, the larger the final bill will be. But as a way of allowing you to stay in your home and get any debts under control and help maintain your standard of living in retirement, equity release has its attractions.

Dean Lambie, chief executive of SunLife says: “For those who either cannot find a suitable property to downsize to, or are reluctant to give up the family home, this could prove to be a good option.”

Whether you're curious as to how much you can release, or you want to take the initial steps towards releasing equity, this handy calculator will give you the information you require.

Or you can contact us on 0800 029 1233 to discuss your needs with a view to arranging a face-to-face home visit with one of our financial advisers.