Equity release mortgages are helping pensioners meet their pension shortfall.
More pensioners are considering equity release mortgages as a means of boosting their income to top up their pension deficit.
Figures from Just Retirement reveal that equity release mortgages are now being consider by a broad range of pensioners concerned about rising costs. Equity release is being used to help pensioners top up retirement income which has hit a low because of falling annuity rates and increased living costs.
Figures also reveal that the average age at which people take on such mortgages has fallen by 9 years making the average age now 61.
However on a cautionary note home-owners are being advised to not to take on an equity release mortgage too early as it can only be done once, and the younger you are the earlier your options are used up.
Figures recently released by the Equity Release Council formerly Ship, reveal almost 75% of home-owners advise that they are planning to use their home later life to fund their retirement as they haven't a sufficient pension.
Low interest rates, erratic stock markets and a reduction of yields on government bonds all mean that retirement income has fallen. Savers who are approaching retirement are being warned to wait to buy annuities until the financial markets start to pick up.
For many home-owners equity release mortgages may be an option to consider, however those thinking of taking on such a deal are advised to seek advice and think carefully before making any decision.
For an up to date mortgage market comparison contact Deal Direct today.
