Equity Release could help against rising unemployment and inflation
With UK employment hitting a 17-year high, and the rate of inflation at its highest rate in three years, many over 55s are considering equity release to help support both themselves and their families.
According to figures from the Office of National Statistics (ONS), UK unemployment is up by 114,000 and is now at 2.57 million, a 17-year-old high.
16 to 24 years are the worst affected with 991,000 youngsters finding themselves out of work in Q3. These high levels of unemployment are exacerbated with news of a further rise to inflation. CPI inflation has never been higher than its current rate of 5.2 per cent; the increase largely down to reach rise in energy costs.
The Retail Prices Index (RPI) measure, which includes mortgage interest payments, has also increased to 5.6 per cent, a 20-year high.
This trio of trouble has naturally left many anxious about their dwindling finances, prompting many over 55s to consider equity release to help both themselves in retirement and loved ones struggling in the current financial climate.
Equity release is also at its highest level since early 2010; the number of equity release customers increased by 12 per cent to 4,148 in Q3. Understandably, given the nature and implications of the product, new business largely came through intermediaries (88 per cent).
Anyone considering an equity release plan is advised to consult both a financial and legal professional. Goldsmith Williams is an equity release specialist and prides itself on explaining the full legal nature, implications and effects of taking out an equity release plan.
Content correct at time of publication