Can equity release affect your pension income?
Taking out an equity release plan won’t typically have an impact on income you receive from a State or private pension. However, there may be circumstances when it affects other types of income in retirement, such as Pension Credit.
As the population ages, retirees are increasingly seeking ways to unlock the equity tied up in their homes. Many need to supplement their pension income to support their retirement lifestyle. One popular option is an equity release scheme. These allow homeowners to borrow against the value of their property without having to sell it.
Equity release plans can provide much-needed finance in retirement. But they do come with potential implications that require careful thought. This article looks at the following issues around the impact of equity release on your retirement income:
- What is equity release?
- Does equity release affect your State Pension?
- Does equity release affect other income you may receive from the State?
- Does equity release affect your private pension income?
- Does equity release affect your income from savings or investments?
- The importance of advice when considering equity release.
For more information and advice from our selected advisers, you can call us on 0800 096 2215, or request a call back and we’ll be happy to help further. Alternatively, check your eligibility and get an initial indication of how much tax-free cash you could release.