Thursday 2nd of April 2009
The amount of equity being released from homes in the UK represents only a fraction of what is available, it has been observed.
According to Safe Home Income Plans (Ship), retired people hold over £840 billion, but only £1.2 billion is being released each year.
Those who are struggling to obtain finance in this way may need to seek IVA advice in order to assess non-borrowing solutions to debt problems.
But Ship noted that the problem means many people are unable to fund their retirement and that the government should take steps to encourage such "innovative solutions".
Director general Andrea Rozario remarked: "The UK’s rapidly ageing population means that the government is facing a retirement financing crisis," adding that without equity release "there will simply not be enough money to care for the elderly".
Last week, Ship began an investigation into ways of ensuring that the equity release market is successful in the future.
