Grandparents filling financial void when parents can’t
More than a third of over 65s are offering a financial olive branch to both their children and grandchildren, according to a nationwide survey by MetLife.
While 17 per cent of over 45s are helping their children, more than double of over 65s (35 per cent) are able to provide financial support to family members with over a quarter paying out £2000 or more.
However with pension provisions waning, many retirees may need to turn to their property in order to continue to offer loved ones a financial safety net. Richard Espley, Head of Equity Release, explains how it works:
“Equity release allows a homeowner to unlock some of the value of their property without having to sell up and move out. The amount borrowed, plus the interest accrued, is then repaid when either the property is sold or the policy holder(s) pass away.
“Homeowners are able to release money in either a one-off lump sum or in smaller, more regular amounts. This is called drawdown. Depending what you are using equity release for, your financial adviser will be able to recommend which option is best for you.”
Content correct at time of publication