Equity release could help retirees maintain standard of living
Britons need to find an extra £23.6bn each year in order to maintain their current way of life, according to new figures by MGM Advantage.
As inflation continues to rise, the retirement income solutions specialists has found each household needs to increase their annual income by £897.73, a feat which is difficult for the majority but especially so in retirement.
Aston Goodey is the Distribution and Marketing Manager at MGM Advantage:
“Inflation is particularly damaging for retirees, whose income is typically fixed. There is some good news today as the upward pressures on inflation were largely from air fares, clothing and footwear. However we have yet to see the impact of the current US drought on food prices here in the UK.”
There figures have led to retirees being encouraged to start to consider ways in which they could raise their income, including equity release.
Equity release allows a homeowner to release funds from their property whilst retaining the right to live there. In these financially tough times such an option is proving increasingly popular; £424m of equity was released during the first six months of the year.
Content correct at time of publication