Equity Release solace for the unemployed

Published: 15/07/2011

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.

Available options

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.

Source
¹Mail Online (June 2011)
²Financial Times (June 2011)

Content correct at time of publication