If you’re over age 55, you may be able to take advantage of equity release. This provides you with the equity you’ve put into your home as cash that is available right away. Of course, it does then mean you have to repay this loan at some point in the future by selling the home. However, for those who are in retirement, and determine that they are in need of cash for medical expenses or some other unforeseen circumstances, an equity release can be the perfect way of getting that money. Here are some of the benefits you can get from an equity release.
Keep On Top of Your Finances
If your budget for your retirement isn’t as strong as you’d like it to be, an equity release may be just the thing to help you keep your finances in check. Many people in retirement have enough set aside to live comfortably, but they may not have calculated for some emergencies. The older you get, the more health-related expenses you may face. There are other concerns, too, such as emergencies your children or grandchildren may have to deal with. Being able to have a source of emergency funds can be very reassuring.
Provide Your Children with an Early Inheritance
Some people use an equity release to provide their children with their inheritance early. This can be very helpful if your children are trying to buy a house, need to suddenly purchase a new vehicle, want to start their own business, or are struggling to send their children to university. Some parents simply want to see their children enjoy their inheritance and use equity release to provide it to them early.
Pay Off Debts
While you may have planned to enter retirement debt-free, life doesn’t always work out that way. You may have car loans, and other debt, still hanging over your head and eating up a good amount of your monthly budget. An equity release may be the right way of dealing with this debt. You can discuss your options with this equity release provider to learn more.
If your retirement fund isn’t as large as you need it to be, you may need to do an equity release to simply pay your bills. Some people expect to live a certain number of years and only budget for that time. However, as healthcare improves, people are living longer and longer. You may find yourself living into your late 80s or 90s, but your retirement fund may start to dwindle. If you don’t want to become a burden on your family, an equity release can cover the cost of basic necessities.
Finally, you can always tap your equity if you simply want to enjoy your retirement but don’t have the cash to do what you really want to do. You can use your equity release to do anything you want, and that includes travel, purchasing a new car, taking a cruise, or visiting all of the locations you’ve always wanted to see, but never had the time or money to do so!