Providers are hailing it as a solution to pensioner poverty but retirement planners are taking a more cautious approach to using equity release in this way. Maryrose Fison takes a closer look at what advisers need to consider when advising on these products.
For many pensioners, surviving on a paltry income is a day-to-day reality. Two million people aged over 65 currently live below the poverty line on a single person weekly income of £124 per week or £214 for a couple in Britain. With life expectancy rising and pensioners’ savings increasingly eroded by low interest rates and high inflation, it is little wonder that retirement planners are now facing more queries about equity release. The number of equity release plans sold in the first half of this year rose by 5% compared to the last half of 2010, according to Key Retirement Solutions...
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