Equity release schemes will become increasingly popular in 2009 as elderly people try to meet the rising cost of care, according to Intune.
Intune, set up by Help the Aged to provide financial services to older people, says a desire among old people to remain in their home and not rely on their family to pay for care will drive the equity release sector forward in the coming year.
A survey suggests a quarter of those aged over 60 put being able to afford long-term care as their top financial priority, but one in five fear they do not have enough cash to pay for care.
Furthermore, 74% of older people want to remain in their own home should they need old-age care in the future, with 41% willing to pay extra to access in-home support.
Stuart Castledine, managing director of Intune, says: "The cost of long term care is a major concern for the majority of people when they get older and many are forced to rely on the equity in their homes to pay for it.
"While equity release is not suitable for everyone it can often be the only option for some when they have no other means of paying out for the financial burden of care costs."
Intune's survey found less than one in five people could afford to pay for their care needs without releasing equity from their home.
The firm says many may want to consider using the considerable equity they have built up in recent years to pay some or all of their care costs.
Intune adds older people should always look at their options before choosing equity release by visiting an IFA.
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]IFAonline
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From 6 April 2019