‘Four in ten’ retirees prepared to release equity

Almost four-tenths (39 per cent) of retirees would be prepared to release equity from their home to improve their finances.

Such is the result of a recent study by equity release firm Home & Capital Advisers, which found that other means considered by senior citizens to improve their financial situation included downsizing their home (21 per cent) and selling valuable possessions (12 per cent).

Nigel Hare-Scott, managing director of the company, stated that rising costs of commodities such as energy, council tax and food put pressure on day-to-day finances, reports the Press Association.

"Many of them live on a limited income with little or no scope for an increase, particularly since the state pension has not kept up with inflation," he said.

Consumers may find that it is advisable to obtain legal advice prior to releasing equity from their home, to find out their position in the eyes of the law.

A recent study by Norwich Union indicated that one in ten retirees cut back on heating costs, clothing and socialising as they worry about bills.