Elderly people who are comfortable in their current properties should consider taking out an equity release plan as an alternative to downsizing, a financial expert has said.
Writing for Lovemoney.com, John Fitzsimons said that property is a "good long-term investment", particularly when it comes to providing a retirement income.
Taking out an equity release plan was seen by the report as one of the ways in which property can benefit finances.
However, Mr Fitzsimons also stated that there are alternative ways in which pensioners could boost their income through their homes.
These include taking in a lodger and generating rental payments.
Mr Fitzsimons added: "The role of advice, in clearly explaining and outlining the consequences of proceeding with an equity release plan – and more importantly, which plan to go for – is vital.
"The equity release industry needs to continue stepping up its game, offering more attractively priced and innovative products."
Figures from the Pensions Policy Institute suggest that around 40 per cent of UK net wealth is currently stored in property equity.
Posted by Christian O’Leary
