Could equity release help 'middle-income' families?

An increasing number of families may turn to equity release schemes, as one thinktank has claimed the future looks bleak for pay increases.

Millions of individuals are unlikely to see their earnings return to pre-recession levels until at least 2020, according to the Resolution Foundation.

A study by the independent body focused on "middle" Britain, which includes ten million adults who do not rely heavily on means-tested support from the state.

The research found that if growth remains sluggish for the next eight years, the average annual disposable income would be £20,200 in 2020, which is £1,700 less that in 2007.

Matthew Whittaker, the report's author, claimed members of the "middle" are losing out, while those in higher income households benefit.

He commented: "If this trend continues once growth returns it may not be just those on low and middle incomes finding themselves left behind in the next decade, but rather the majority of society."

According to the Resolution Foundation, 65 per cent of middle income families have no secure retirement funds, compared with 40 per cent of higher earners.

Equity release schemes from Ashall Glover Financial Services

Posted by Louise Tilston