Could equity release offer a solution for a debt free retirement?
Almost a fifth of pensioners are facing retirement with outstanding debt, according to research by Key Retirement Solutions.
In a study of 4210 customers, it was revealed 18 per cent of them have an outstanding mortgage, 17 per cent have unpaid credit cards and 16 per cent are still paying off personal loans.
It is estimated the average pensioner needs to set aside £198 each month to cover these debts; for those with outstanding mortgages this increases to £331. With average income totally £17,674, this means retirees are having to use 13 and 22 per cent respectively on debt alone.
As a growing number of pensioners face a retirement somewhat spoilt by debt, many are considering alternative options, including equity release.
Equity release allows you to release funds from your property, either as a one-off lump sum or in smaller, regular instalments, similar to a monthly wage, all whilst retaining the right to live there.
Content correct at time of publication