Equity Release solace for the unemployed
More and more people are investigating the possibilities of an Equity Release plan as unemployment in the over 50s hits a high.
According to the Office of National Statistics, the number of unemployed over 50s has reached its highest levels since 1995.
The 50+ generation are considered the “biggest losers” in the rickety employment market and the stats support such a claim, with currently 398,000 unemployed over 50 year olds in the UK¹.
Increased competition from young graduates is one contributing factor, and it is not a competition the over 50s are winning. While unemployment figures in the over 50s increased by 7,000 between February and April, the dramatically fell in the 18 – 24 years old by 68,000. There was also a drop of 16,000 in unemployment within 25 – 49 year olds¹.
There has also been a 40 per cent increase in the number of over 50s who have been unemployed for more than two years, up from 66,000 in 2010 to 95,000 today¹. Dr Ros Altmann, Director General at Saga sums it up:
“Once you are out, you stay out. Employers don’t want to look at them.”¹
And it’s not all plain sailing for the lucky ones who have managed to find their way back into employment. 45 per cent of those who found a new job had to take a “considerably lower salary”¹.
Equity Release gives the over 55s the opportunity to release funds from their property whilst continuing to live there. You can receive the equity from your property either as a lump sum or in smaller amount on a regular basis, much like the way you would receive a monthly salary.
Equity Release plans were previously most popular with the over 65’s but, in Q1 of 2011, more than a quarter of Equity Release plans were taken out by people under 65², suggesting more and more are considering it as a viable solution to redundancy and unemployment.
However, whenever considering an Equity Release plan, it is essential you consult both a financial and legal adviser. A specialist Equity Release solicitor, such as Goldsmith Williams, will explain the legal nature, effects and implications an Equity Release plan should have. We can also refer you to a panel of practised financial advisers.
Contact the GWLifetime team on 0845 373 3737.
Content correct at time of publication