With the rising living costs traditional pensions no longer allow for happy retirement.
Pensions are running short due to everything costing more and people living longer.
For these reasons releasing the equity tied up in home owners property has become popular over recent years.
Retired home owners who are finding it difficult to cope with there pension find releasing the rising value of their property to boost their weekly income very attractive.
Home owners who are in financial difficulties may also use an equity release scheme to clear there debt and let them stay in there home.
There is a vast selection of schemes on the market promising to help you clear your financial worries or give retired home owners a large boost to there pension.
Do they deliver? Yes, they do.
However, with many different schemes available, you need to research before investing and remember if you release your house equity, it will be sold upon your death or when you move out, and you will not be able to leave it to your family.
The schemes all vary slightly in how they work and you should seek independent financial advice before making any decisions.
The company who you release your property to will give you a loan.
This loan can be paid to you in monthly payments or a large cash sum.
You will be allowed to stay in your home and the company will recover this loan when you pass away or move into care.
Equity Release plans Attractive Features

• A choice of regular monthly payments, cash lump sum or both.
  If you take the cash lump sum it can be as large as £10,000 and monthly payments can range from £200.
  
• The Money released from your property is free of tax.
  
• When you release the equity you can stay in your home
• Equity release may be more suited if you have no children or family you would like to leave your property too.
  
• If you have children or family you would like to leave money too equity release can save the loss of 40% in inheritance tax upon your death.