Don't rely on property for retirement income

clock

Homeowners who plough cash into their property for retirement and dismiss other saving options are taking a risk, warns an equity release adviser.

Simon Chalk, equity release planner at Bower Retirement Services, said some people are planning for retirement by "shoving" as much money as they can into a house to increase its value. They then pay off the normal mortgage so they can use equity release a generation down the line. This is being done instead of pension planning. He said: "This method is dangerous because it makes an assumption that there will be viable and attractive equity release solutions in 20/30 years. You cannot base a decision in the future on what you know today about the state of the market." Chalk sai...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Equity release

Royal London acquires later life lender Responsible Group

Royal London acquires later life lender Responsible Group

Mutual purchases remaining stake in later life lending group

Jenna Brown
clock 23 November 2023 • 1 min read
Equity release activity up 26% year-on year

Equity release activity up 26% year-on year

‘Continued return to pre-pandemic market growth’

Julia Bahr
clock 02 August 2022 • 4 min read
Rory Gravatt: What do equity release and skiing have in common?

Rory Gravatt: What do equity release and skiing have in common?

Going off-piste?

Rory Gravatt
clock 12 April 2022 • 3 min read