5 Ways Equity Release Can Help You to Overcome Retirement Hurdles

It’s of little surprise the Equity Release Council announced it is expecting at least £2 billion in released equity by the end of 2016. In the first half of the year, some £908 million was released by over 55s. This is an increase of £198 million on 2015.

The popularity of these schemes shows no sign of abating. For Q3 of this year, the council has once again announced record figures. £571 million of lending was announced, the highest in its recorded history and up by 26% on the previous year.
So what does all this mean for pensioners? The good news is there’s a record number of equity release schemes available to choose from, all of which can supply you with a large cash lump sum to provide you with a significant financial lift for your environment.
Many over 55s in modern life are reaching retirement age without the financial benefits of what they’d expected. As a result, an ever increasing number are turning to equity release to overcome contemporary retirement hurdles. Here are five ways releasing equity can help you.

1. An outstanding mortgage

Arguably the most popular reason to release equity is to completely pay for any outstanding fees on a mortgage. Many over 55s have found this difficult to cover as they approach retirement, leaving them to continue working or struggle to overcome this frustrating hurdle.
Equity release allows them to take a large cash lump sum out from the very same home and this will, typically, cover the costs of a remaining mortgage and leaves funds over for any other retirement plans you may have.

2. Clear debts

Again, the main appeal for equity release is in the form of a large cash lump sum which can seemingly remove financial troubles overnight. Lasting debt in retirement is another frustrating situation many pensioners find themselves in, which is why releasing equity provides a genuine solution.
No matter which scheme you choose, it will cover issues such as outstanding medical or credit cards bills, allowing you to clear away your troubles and get on with enjoying your retirement.

3. Pay university fees

If you have children who are eager to go to university, but you’re concerned about the often daunting costs involved, releasing equity is an ideal way to cover the funds. As with the second point, releasing equity can also be used to cover any shortfalls in funds for existing university fees.

4. Pay for home improvements

You may simply wish to improve your home in retirement and make it a more suitable environment for your circumstances. Whether this is to make adjustments to your home so you can enjoy living in your updated property, or an enhanced garden so you can truly lose yourself in your spare time, by choosing the right scheme you can turn your property into your dream retirement home.

5. Provide an early inheritance

Through equity release, you can provide an early inheritance to your loved ones and you’ll get to see them enjoying their money. It’s a wonderful gift to offer your children and seeing the results is an equally wonderful opportunity.