How can I provide for my family in retirement?

Using equity release to provide a living inheritance ensures you can see the legacy you leave to your loved ones, rather than waiting until after you’re gone

Often when children and grandchildren need financial assistance the most – such as getting on the property ladder, securing an education, starting a family or celebrating a big life event – you’re in or approaching retirement, with a lower income. Traditionally, a financial gift is left in a Will, but with a rising age expectancy and struggles such as those for first-time buyers, the over 55s are looking for ways to provide for their loved ones sooner rather than later.

Using your home to help

For homeowners over 55 who want to help out younger family members but who don’t have the cash readily available, equity release has been one solution that has been able to help. By unlocking a tax-free cash lump sum from their home, they’ve been able to provide a financial gift, like Sandra (69), of Sidcup who used her equity release to help her daughter and three grandchildren find somewhere to live.

“My daughter has been going through a difficult time recently and was struggling to find a place of her own,” she explained. “As well as helping her find a home, I’ve decorated my house, had a new kitchen and bathroom fitted and taken one of my grandchildren to Tenerife to visit my sister.”

Can I still leave an inheritance?

Yes – with some plans you can leave a guaranteed inheritance, too. This flexible feature means you can select a percentage of the property’s future value that you wish to protect.

What else do I need to know?

A lifetime mortgage, which is a loan secured against your property, is the most popular form of equity release and you’ll retain full ownership of your home. Equity release reduces your estate’s value and may affect any means-tested benefits you’re eligible for. Typically, with a lifetime mortgage, there are no monthly repayments to make as the loan, plus roll-up interest, is repaid when the plan comes to an end.

Where can I find out more?

We all have questions when it comes to equity release. Key Equity Release advisers deliver advice that is unique to you and your needs, ensuring they find the right solution for you. If equity release isn’t right for you, they’ll tell you. Plus, unlike other advisers, all their equity release advice is absolutely free.