Feeling the pinch? Your property could help relieve the financial burden

Published: 13/12/2012

Many retired homeowners are suffering unnecessarily in the current financial climate. Latest figures have shown that retirees collectively own property worth £756.36 billion, suggesting those affected by dwindling pension funds and depleted savings could use their largest asset to alleviate the financial pressures currently faced.

Recent figures by the Office for National Statistics (ONS) showed around 35 per cent of retirees are deemed to be in “fuel poverty”; 45 per cent of single pensioners and 27 per cent of retired couples had an income of less than £10,000 and £15,000 respectively.

For many, retirement now means a significant cut in income and therefore a dramatic change in lifestyle. Equity release, however, helps people to utilise their biggest financial asset – their home – to compensate for any shortfall.

Taking out an equity release plan allows the homeowner to withdraw funds from their property whilst retaining the right to live there.

Content correct at time of publication