How Equity Release Could Help You With Bills

Homeowners in the older age bracket (roughly between 55 and 95) were raised in a period when families traditionally fended for themselves and had less dependence on the state. It’s a generality, but there is some truth in it.

For this group of people equity release schemes may not be the first option they think of when they need to raise some more money. However, equity release can help older people who do not have much money by boosting their income and giving them a more comfortable retirement.

Equity release is becoming a popular way for people to fund their retirement. Figures from Key Retirement Solutions said that £463 million was released for the purpose in the first half of 2011, up from £454.9 for the first half-year of 2010.

TV presenter and environmentalist Philippa Forrester believes that many older people prefer not to spend beyond their means to avoid getting into debt. However, Ms Forrester also believes that the same group of people are not getting access to the best deals available (for example, for energy and insurance) because they are accessible via the internet, which many older people don’t have.

Ms Forrester said: “I don’t think they necessarily know that there are other ways of paying for your energy.”

Equity release plans could be one way of helping older people to meet the rising bills for gas and electricity, for example.

Equity release plans also people to access cash that is otherwise locked up in the value of their property. The result is that bills are paid more easily and extra cash can enable a better lifestyle in retirement.

Ms Forrester also suggested that the older age group were likely to make a fuss about any financial problems, and are better at making do. She said: “They are less likely to stick their hand in the air and say "we’ve got a problem here’ and they are less likely to spend money that they haven’t got, or see there is another way of paying for their bills and maybe spreading the cost out.”

The caring environmentalist also believes that the coalition government should do more to prevent older people falling into “fuel poverty”. She said that older people were more vulnerable to the cold, simply because they don’t move around as much to generate warmth.

Jenny Saunders, chief executive of the National Energy Action charity, recently said that fuel poverty was the biggest issue facing the energy sector in decades. She told the Yorkshire Post that fuel poverty levels are the same now as they were 15 years ago (1996).

If you are looking for equity release, then there are many places on the internet that could assist you in understanding and finding a theme. People have a lot to consider when thinking about equity release, making reading about it essential. You need to know how it works, what schemes are available, which plan would suit you and your circumstances best.

If you’ve got an older friend or relative who is not on the internet, why not help them by having a chat with them on the subject too?

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