Could lack of financial back-up spur equity release?

Equity release may be a viable option for several employees who currently have no back-up financial plans.

One in five workers do not have any source of alternative funding if they were unable to earn their living, it has been claimed.

A new piece of research conducted by the financial expert Unum found that a large section of the working population lack basic back-up plans such as relying on their partners or even having money put away in savings accounts.

Marco Forato, chief marketing officer at Unum, said: "Our research shows that too many people seem to be either unaware that they can take steps to protect themselves against an unpredictable event that can lead to the loss of their full income for a long period of time or are burying their heads in the sand and adopting an attitude of 'it won't happen to me'."

It was also found that an average employee would be able to sustain himself for a maximum period of one month if they were to lose their jobs. This period was not enough to find another new job, which makes equity mortgages a suitable alternative.

Ashall Glover Financial Services are equity release specialists

Posted by Edward Simpson