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Wednesday 24 August 2011

76% of people happy to forgo property inheritance to allow parents to enjoy themselves


More than three-quarters of people are happy for their parents or grandparents to use equity release to help fund their retirement, despite property being seen as a key part of inheritance, according to recent research.

It revealed that the topic of inheritance remains taboo, with 63% of Britons having not or refusing to talk about it openly with their parents.

However, 40% of people still expect an inheritance and may even build it into their own retirement plan.

It also highlighted that as the cost of living has risen alongside house prices, equity release has become increasingly popular as a method of funding retirement.

The most valuable asset many over-55s have is their home, with an average house price for this age group of £231,306 compared to the national average of £160,519.

Despite the British taboo of discussing inheritance, it seems that three-quarters of Britons are happy for their parents to use the cash in their property to enjoy a better lifestyle in retirement. Retirees should be encouraged to talk openly with their families about their plans and dreams for the future.

Not everyone has the funds in place to support the retirement they once thought possible and we encourage those approaching retirement to look at their full range of assets, including pensions, investments and property.

Equity release could be a solution for some, as it allows people to turn the potentially dormant capital in their homes into cash without having to move, thereby helping them make the most of their retirement years.

If this was something that you wanted to discuss, I have the relevant qualification to advise in such an area, so feel free to get in touch ( mark@themortgagemonkey.co.uk )

Thanks as always for your attention.

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