According to research from Aviva, 64% of UK adults would give up a proportion of their income to help their parents if they were struggling financially once they had retired.
33% however said that whilst they would like to be in a position to do this, their own financial pressures would not allow it.
But families can help, by supporting their parents should they wish to release equity from their homes.
Most retired homeowners’ properties have increased in value to the point where there is sufficient equity in them to be released as cash, and this can be done safely courtesy of a Safe Home Income Plans (SHIP) endorsed lifetime mortgage or home reversion plan, provided the homeowners are over the age of 55.
For those adults whose parents are looking to boost their retirement income, but who are worried about the effects equity release could have on their inheritance, they will be interested to learn there are plans available that offer a guaranteed inheritance.
Equity Release: a Solution worth Exploring
But if the majority of adults would give up part of their income to help their parents, then presumably they would feel that equity release is a solution worth exploring?
A good equity release adviser will always make sure the family is involved in the advice and decision making process and will openly invite family members to attend the meetings so that any questions they have can be addressed.
According to Geoff Charles, Managing Director of equity release specialists Bower Retirement Services, children are increasingly all for their parents releasing cash from their homes so that they can better enjoy their retirement.
“Some even offer to make interest payments if they are in a position to do so,” he says.
Instead of relying on family for financial help in retirement, why not consider equity release? Talk to a specialist independent financial adviser to find out if you qualify.
Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration.
Bower Retirement Services is an FSA regulated independent financial advice company that offers specialist advice on equity release throughout the UK.