Leaving your professional responsibilities does not free you from your personal goings-on. Thus, even after you retire, there is a family behind you to look after. At an advanced stage, the family normally includes you and your spouse. Your children, at that point of time, are well-settled and responsible enough to take care of their own requirements. But for your spouse, you are an only ally. Thus, to feed her and yourself, it becomes important to search for extra earning in addition to your pension, which does not prove to be sufficient to meet your essentials. Equity release appears to be an effective solution to the old age problems of the retirees.
Reason behind the Popularity of Equity Release Plans
The features and benefits that the equity release programs offer are the primary factors that have led to the popularity of these financial solutions. Some of the special attractions of the scheme are as follows:
- Depending on whether a retiree desires to earn a regular monthly income or a lump sum, a lender provides him the amount.
- The amount which the retirees receive is in lieu of their own property is in addition to their pension, without any tax payment or deduction worries.
- The lenders allow the retirees to live within their own property till they desire without any necessity to leave it for repayment. They are, however, free to repay when alive, if they leave their household and move to an old age home. While, if they want they can care-freely live within their household till their last breath. When they expire, the lenders sell their property and get back their lent amount inclusive of interest.
So if you are willing to avail the benefits offered by the equity release schemes, make sure you possess the minimum eligible age as well as an ownership of a properly maintained asset.
