Could home equity release help those with small annuity pots?

Those retirees that reach retirement with small annuity pots could turn to home equity release to help fund their retirement income. With the pension industry quoting that 80% of retirees reach retirement with annuity pots of less than £25,000 it means hundreds of thousands of retirees will suffer low income during their retirement years.

Home equity release could be the answer for many of those reaching retirement with low annuity pots and also own their own home. These are classed as the asset rich cash poor retirement baby boomers.

How can home equity release help those on low annuity income?

Home equity release could allow some of these retirees to raise a regular income from the equity in their homes, sufficient to fund the shortfall in the income they require and the income they will receive from pensions. It will not be the right solution for everyone but could help thousands to have a better retirement.

Here at www.retirementsolutions.co.uk we asked Jennie Gray, independent equity release specialist to comment on using home equity release to help fund income in retirement, Jennie said, “Home equity release is not the perfect solutions as the products are limited in those that produce a regular income, since Northern Rock pulled out of the market with their monthly release product there has been no replacement. Experienced advisers can use a work around from some of the providers but not is guaranteed indefinite”.