Aug 27 2008
People considering their options for saving for retirement may like to look at equity release schemes, Fair Investment has said.
For those who own their own home, money can be released from property to supplement a state pension or savings.
There are two mains types of scheme for equity release, the most popular of which is the lifetime mortgage. This is a loan taken out against a home which is repaid when the house is sold, either after death or if the owner moves to a care home, to live with family or elsewhere.
Alternatively, a home reversion plan can also release equity. This involves selling all or part of the property to a company or individual and remaining in the home as a tenant.
Sharon Bratley, chartered financial planner at Fair Investment, said it was "hardly surprising" to see an increase in the number of equity release schemes agreed.
"Pensioners are finding it tough and releasing equity from property may be the only way to survive through retirement for some.
"However, an equity release scheme should not be taken out lightly," she added.
This week, Abbey said the number of regular savers – those saving for retirement and other reasons – has risen 51 per cent since 2006.
