How can you afford to help your loved ones?
More and more, finances are being stretched, and while many people would like to be in a position to give their family a financial helping hand, it’s not always possible. A recent report showed that
62 per cent of people due to finish full-time work this year already support their dependants*. The question remains, though, could they continue to do so in retirement?
For most, the reality is that there is only so much support we can offer without putting our own financial security at risk. In later life, often pensions and savings stretch to meet your everyday needs, but when it comes to providing a lump sum or more regular financial help to others, it is sometimes more of a struggle.
Over the years, equity release has become a popular way for homeowners over 55 to release taxfree cash from their homes. As you can spend the money on a range of uses, more than 60 per cent** use it on home improvements. However, more recently there has been a rise in people wanting to take out a plan to help a loved one. Last year saw 28 per cent of customers tap into their property wealth to help out friends and family with their finances.** Having taken out an equity release plan through Key, Phillip Stothart gifted money to his son to help with his home, as well as using the funds to enjoy his retirement.
“I was due to retire. We worked out our finances and found that if we took out equity release, we could do all the things we wanted and live comfortably too. We also saw it as a perfect opportunity to help out our son and his wife, who have just bought their own property. We bought them a new composite door and new windows. And for our wedding gift to them, we were able to give them £5,000 towards a new bathroom.”
For more than 20 years, Key has been advising and supporting people in finding out about equity release. In fact, Key has now helped more than one million people decide if equity release is right for them. Key Equity Release is now offering all their expert advice in full over the phone.
In association with
* Research conducted by Research Plus between December 18-31, 2019 among a sample of 1,000 people expecting to retire during 2020
**Key’s Market Monitor 2019