Equity release 'to be approached with caution'
24 September 2007
Embarking on equity release schemes should be approached with careful consideration, Age Concern has warned.
Although for some people equity release can prove a good way of easing financial pressure later on in one's life, the practice is a "major commitment", the charity explained.
Gordon Lishman, director general of Age Concern added that many older people are 'asset rich' but 'cash poor' and as such many are increasingly turning to equity release as a way of boosting their cash funds in retirement
"The decision to release capital in this way should never be undertaken lightly," he said.
"An independent financial advisor will be able to guide older people through a range of financial options to enable them to consider the best way forward," he added.
According to the Office for National Statistics, many men and women are now working well into their retirement, with the average age at which workers over 50 retired reaching its highest level for men (64.2 years) since 1984.
Further figures from Age Concern show 64 per cent of pensioner households depended on state benefits for at least 50 per cent of their income in 2005.
