Equity release can ease nasty shock of care costs
Older homeowners are ‘burying their heads in the sand’ when it comes to long term care, a recent survey suggests.
With an ageing population more and more of the older generation will require some form of care in their lifetime. However with annual costs of long term residential care approaching an average of £30,000 and average retirement incomes falling some £12,000 short of that, there is potentially a very large gap to plug.
But while a retirement income falls significantly short, homeowners do have another, potentially more attractive, care option as Richard Espley, Head of Equity Release at Goldsmith Williams, explains:
“We understand the desire to bury your head in the sand when it comes to care, resolutely believing ‘it’ll never happen to me’.
“However with an ageing population the likelihood is that more and more of us will require some form of care in our lifetimes. Whilst not a particularly pleasant thought to consider, older homeowners must begin to face the situation and find a way to address the problem should it ever arise.
“Typical equity release plans are not designed to fund residency in a care home as a homeowner must permanently reside in the property being mortgaged, but you can use it to improve the facilities in your home which could then increase your chances of staying in your own home for longer or even help to cover the cost of any home care you receive.
“By allowing a homeowner to release some of the funds tied up in their largest asset means they or their loved ones are able to get the care they need in the comfort of their own home. For many this is a much more appealing situation than having to move into an expensive care home.”
Content correct at time of publication