0 Equity Release Combats Inflation Rise By The Bower Team / In Equity Release Whenever inflation rises it is usually the older generations who feel the pinch the most. This is exactly what is happening at the moment, with new figures revealing that those aged between 50 and 64 years have faced the highest rate of inflation in the last 12 months. According to the latest figures from the Alliance Trust Research Centre, 50 to 64-year-olds are experiencing an inflation rate of 4.1 per cent, with everyday items and clothing proving particularly more expensive. And because the majority of this age bracket fall into retirement age where income is reduced, it is proving harder to cope with rising living costs. Equity Release can Combat Inflation Rises So what is the answer? Well, for those who own their own homes, a lifetime mortgage or home reversion plan allows the release of some of the value locked into their property. This is taken as tax free cash which can boost income in retirement. Cash released via an equity release scheme can be used to pay for day to day living expenses or to treat yourself to things like regular holidays or improvements to the home. Many homeowners use a lifetime mortgage or home reversion plan to increase their disposable income by paying off an existing mortgage or loans so that they have more money to spend each month. Others draw down regular amounts from a pre arranged reserve as and when needed treating it as a rainy day fund. Providing a Safe Home Income Plan (SHIP) scheme is selected, or one that offers the same guarantees, it is a given that the homeowner will be able to stay in their home for life and will never owe more than it is worth. Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration. Bower is an FCA regulated independent financial advice company that offers specialist advice on equity release throughout the UK. For more information email [email protected] or call 0800 4118668.