OAP’S use equity loans to bridge retirement shortfalls
Record numbers of senior citizens are using equity loans as a means to clear their debts whilst in retirement.
Recent research by one of the countries most established retirement welfare specialists (KRS) shows that some 15% of pensioners are using equity levels stored within their homes as a means to clear outstanding credit commitments on their entry into retirement.
The institution states that the number of elderly people opting to release equity from their homes is rising at an alarming rate, which raises concerns that some individuals may not have the adequate funding needed, in order to finance the full duration of their retirement era.
A separate retirement welfare group has suggested that more needs to be done by the Government, to protect elderly citizens from financial shortfalls after they are no longer able to work. Accordingly, more than 25% of pensioners are left paying off mortgage debts well into retirement, with a number of over 70 year olds laden with mortgage commitments that run in excess of £30,000.
The accumulative total of debt for senior citizens is said to stand at around £90 billion.
