If you are keen to supplement your pension with a little extra income but, in the past, you have shied away from equity release because it seems too risky an option to contemplate, now might be a good time to reconsider this reticence.
While it is true that there are some disadvantages that come with taking on an equity release policy, it is also the case that many of these can be easily avoided or resolved if you choose your policy carefully. Critics of this kind of scheme often cite the fact that equity release significantly detracts from your deceased estate, for example, and also draw attention to the dangers of saddling your next of kin with debt in the future.
However, both of these drawbacks can be easily dealt with. In order to ensure that you leave your family some kind of inheritance, make sure that the policy that you choose has a clause stipulating that some estate will remain untouched and be passed on to your next of kin.
A fear that the size of the loan you take out will eventually grow to be greater than the value of your property is not entirely unfounded. However, again, this is an avoidable outcome. Sign up for an equity release policy in which you pay off the interest accumulated in monthly instalments; this will ensure that the loan remains the same size over time.
In short, equity release is a widely varied market today. It is possible find policies that safeguard against all manner of risks so that you can enjoy a happier, well-funded retirement.