Retired homeowners who are wary of their financial situation and want to take action to improve it may look at their property as an asset they can take advantage of.

Using equity release can be a good way for them to secure their financial future, as these products allow people between the ages of 55 and 95 to unlock money from the value of their house that can then be spent on whatever they want.

The cash can be used to carry out home improvements to allow them to stay in the property for longer, to go on a holiday-of-a-lifetime or to help out friends and family members in need.

According to a report by the Daily Telegraph, it is important that those who are considering equity release plans ensure they choose a provider belonging to the Equity Release Council.

Downsizing

It was noted that downsizing to a smaller property is another of the options on the table, but this will not be a suitable choice for a lot of people, who will not want to go through the stressful process of packing up and relocating to another home.

The news provider also pointed out that those who are coming up to the age at which they are intending to retire have action they can take to ensure they are financially comfortable.

"If you are approaching retirement and still have credit card debts outstanding, deal with them now," it said, adding: "One option is to apply for an interest-free credit card, which will allow you to pay nothing on your debt for a set period of time, in exchange for a balance transfer fee, which is usually a set percentage of the debt that you are transferring."

Equity release can be another good way for older people to clear any remaining debt they have before going into their years of retirement.

Debt levels

Data collected by Prudential for its Class of 2013 research recently showed that around one in five people (18 per cent) who are set to retire in the coming 12 months will do so with some level of debt.

It was revealed by the company that there will be outstanding debts on average of £31,200 each, which indicates the extent of the debt problem in the UK.

Those who want to find out more about equity release and what such products can do for their finances can get in touch with the experts at Key Retirement Solutions.

Posted by Tom Papworth