Equity Release ,while not right for everyone, can give a significant edge as a qualification to an adviser.
The simple fact is that the UK population is gradually getting older. By 2017 we expect to see over 660000 reach the age of 65 and – depending on their health and finances- retire. This situation is only going to increase.
What does this mean for the country? Whilst longevity is a boon for the individual it is a nightmare for the government who will be required to support these people for longer. The burden for this expense will fall on the taxpayer who is also getting older. The government has already taken some steps to resolve this issue such as extending retirement ages however the fact remains that people are not saving enough for retirement.
The current economic turmoil is working against this as people are barely surviving never mind saving for retirement as their priorities are clearly focussed on today. As a result pensioners are reaching retirement and finding a significant gap between what they have saved and what they will need to survive in retirement.
Whilst downsizing becomes an obvious solution it often does work out that way due to the current mortgage market and some people do not live in properties that would generate enough capital for them to downsize. The one asset these people do have is their own home and many are now turning to Equity Release to enable them to enjoy a better standard of living in retirement.
People living longer means that legacies are often now not as important in relation to retirees being able to enjoy their retirement . It is important that these retirees get the right advice from an equity release specialist.