76% happy to forgo property inheritance for equity release
06 September 2011
Children and grandchildren give the green light to equity release, according to recent research from Aviva. Aviva's study found that 76% of those asked would be happy for their parents or grandparents to release money from their home to enjoy in their retirement. This is despite a whopping 63% admitting that they have not, or would not, talk about inheritance openly with their parents.
Aviva's findings will make welcome reading for many who are considering equity release but are worried about leaving an inheritance for their family. The research shows a generation of children and grandchildren who are more likely to want their parents or grandparents to enjoy their retirement, than to begrudge them releasing money from their home.
Equity release as a reality
As pensions struggle to cover the high cost of living, being given the equity release go-ahead from family members is likely to please many pensioners, for whom equity release is becoming a reality. Aviva's real retirement report highlights that adjusted inflation rose 4.7% over the last 12 months for over-55s. The most severely affected are the over-75s who have seen their monthly income fall from £1,416 (May 2010) to £1,178 (May 2011). Add to this an average debt of £17,112 for over-55s, and it's easy to see why releasing cash from their home is a popular choice for many. Think carefully before securing other debts against your home.
For many cash-poor, asset-rich pensioners, their home is their biggest asset. Key's Property Price index shows that UK pensioners own outright £752bn worth of property. Equity release can unlock some of this money and help retirees enjoy their well-earned retirement years.
Protect your inheritance
Despite Aviva's research, inheritance may still be a consideration for many people, and there are plans that allow you to guarantee an inheritance for your loved ones.
SHIP's 'no negative equity' guarantee ensures that with SHIP approved plans, the amount owed will never exceed the total value of a property. This means that loved ones will never be left with any outstanding debt.
Find out more
If equity release sounds like the right option for you, call 0800 531 6027 to book your free, no-obligation initial appointment. Lines are open Monday - Friday, 9am - 5.30pm. Key's local advisers will tell you how equity release works, explaining how it will reduce the value of your estate and may affect your entitlement to some state benefits. They will also search the whole of the market to find the best deal for you. Alternatively, try our online calculator to find out how much you could release from your property today.
This is an equity release plan. To understand the features and risks ask for a personalised illustration.
Key's typical fee is 1.65% of the amount released, payable only on completion of the plan.