Equity release has been enjoying a surge in popularity of late, with the sector breaking new lending records on a regular basis. More and more people are considering it as a way of boosting their retirement income, but how do you know if it's right for you? It's all about getting the right advice.
The right adviser can help you go through your retirement options so you get a better understanding of the solution that would work for you, and crucially, they won't force you into anything if it turns out to be unsuitable. Indeed, research from Bower Retirement shows that advisers are recommending around one in 10 potential equity release customers each year to take out other solutions, as releasing property wealth won't be suitable for everyone.
That's why it's so important to thoroughly understand your options, as well as what equity release entails, with the research further finding that just 22% of clients are well-informed about equity release when they first see their adviser. Key objections when potential customers first consider equity release include concerns about inheritance (62%) and that their family will be unhappy (54%), while 49% are worried about rates and 32% worry about getting into debt, so the need for advice is clear.
"The equity release market is growing strongly but will never be right for everyone, and it is encouraging that advisers regularly recommend clients do not go ahead," said Andrea Rozario at Bower Retirement. "Most clients are not well-informed about using property wealth before they start the process and need advisers with the skills and capability to explain their options thoroughly."
So don't go it alone! Equity release is a complex business, and while it's increasingly becoming a viable option for people to boost their income in retirement – after all, rising house prices mean many people have plenty of equity they can tap into – it isn't for everyone, so make sure you get the advice you need before you take the plunge. If you're considering it, contact our no obligation equity release service to get started, and find out more about your options.
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Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.