The Gift of Giving: Equity Release to Support Your Family
Being able to support your family financially in times of need is something that many people wish they could do. However, in recent years, it has become apparent that more and more people over the age of 55 are turning to their properties to help them support their loved ones in times of financial need.
In fact, according to a report released by Key Retirement, around one in four pensioners have released equity from their home to help their families financially.
Where Can the Money be Spent?
Money that you receive through equity release is yours to do with as you wish. There’s no right or wrong way to spend it and there’s no limit on what you can spend your wealth on – it is your money, after all!
However, the Key Retirement report found that giving was one of the driving motivators for people to look into and ultimately commit to equity release. In most cases, it appears to be parents and grandparents wanting to gift their equity release to cover major expenses such as university fees, debt clearance, house deposits and even holidays for their families.
Thanks to the competitiveness of the equity market right now, more and more people are taking advantage of fixed for life rates which are currently at their lowest ever.
It is also interesting to note that this generosity comes directly from the people; parents and grandparents are actively seeking equity release to help those they love, rather than their families asking them for financial help.
Not Just For the Younger Generations
While ensuring that your family are financially better off, it is important to remember to look after your own finances, too. The report, which covers quarter one of 2018, showed that pensioner debt was also high on the agenda for those opting for equity release from their property.
Helping reduce mortgage debt and paying off any credit cards and loan payments was the main motivator for around one in five individuals releasing equity from their homes. Later life debt can be incredibly hard to deal with for a huge amount of people, and it is encouraging to see people turning to their properties to help make their own later years more comfortable and stress-free.
Retirement especially should be a relaxing time of your life and with more people facing financial uncertainty earlier in their adult lives, ensuring that your finances are in order has never been more important. While it is pretty much impossible to predict how your life will span out, especially with regards to your finances, it is important to remember the services that you have available to you to help keep you financially stable.
Would you like to learn more about equity release and how you can help your family in times of need? Feel free to get in touch with us today – we’ll be more than happy to help!