The equity release specialist says the number of people over pensionable age is increasing yet the state funding system is showing massive accommodation shortages.
To ease the burden of funding long-term care Key says people over 65, who currently have £500bn in un-mortgaged equity tied up in their homes, should should consider equity release.
Key Retirement Solutions group director Dean Mirfin, says: “Many pensioners who require care do not want to move away from their family and friends in order to receive it. Equity release provides a solution for those who do not wish to move by releasing cash tied up in their property. Depending on the amount released, pensioners can then choose to either purchase care privately or stay in their own home and receive domiciliary care.”
However, Mirfin points out that while equity release can provide a certain element of financial freedom in retirement, it is not always the right solution for everyone.
He says: “The way in which care is funded and provided should be carefully considered. We believe nobody should commit to equity release without first seeking independent financial advice.”