Equity release 'a logical option for retirement'

Equity release schemes are a logical option for people sitting down to consider their post-retirement finances, according to an industry insider.

"If you are planning your retirement and you need to consider what assets you've got, then it makes total sense to take into account your largest asset," explained Andrea Rozario, director general at Safe Home Income Plans (SHIP).

Although equity release will not be the right choice for everybody, it would be "ridiculous" not to even consider it, she remarked.

"It is a valuable planning tool for retirement," Ms Rozario added.

There are a variety of reasons why people opt for home reversion plans, according to a new survey conducted by Bridgewater Equity Release.

While 30 per cent of respondents were planning to use released equity to pay off their mortgage, 17 per cent used the funds for home improvements and 6.5 per cent said they intended to use the money to purchase a holiday home or other property.

Ashall Glover Financial Services are equity release specialists