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The current state of the economy and its effects on the cost of living are broadcasted on a daily basis in the newspaper, on television, on the radio and on the internet. Today, people are having a difficult time securing their future. It is no longer easy to obtain a property or to pay the rising tuition fees. If you are retired you have less potential of finding help in the mainstream market, but there is a solution under equity release schemes.

Retired Family Are the Solution
During these difficult times of economic instability, retired family members can be the solution to the problems of many families. If a retired family member is the owner of a property, he or she can enter into an agreement with an equity release provider. This agreement will allow he or she to release money tied up in their property. This money is tax free and can be obtained as a fixed source of income or as a lump sum amount.

Qualification Measures to Meet
In order to enter into an equity release agreement, a retired family member needs to qualify for equity release. He or she must be no younger than fifty-five years and no older than ninety-five years. He or she must be the owner of the property which must have a value of at least seventy thousand pounds. The property from which he or she hopes to release equity must the permanent residence meaning that he or she lives in the property for at least six months each year. Only if a retired family member is able to meet these requirements will he or she be able to benefit from equity release schemes.

Advantages of Helping
The advantage of equity release is that the retired family member does not need to make any sacrifices in order to help his or her family. He will be able to continue living in his or her home for as long as he or she wants to or for as long as he or she is able to. He or she will also not be required to make any repayments unless he or she chooses for an equity release plan that requires a monthly repayment.

The money obtained from the equity release provider can be used by the retired family member to help his or her children or grandchildren purchase a property of their own or to pay for their education. Even the daily costs of living can be covered by the equity released from the property.

Disadvantages of Helping
While there are not many reasons you would not want to help out your family it should be considered a give and take situation. If you take out equity now then there is nothing later for your family once you are gone. The money for their inheritance is used now. For many it is better to use it when it is most needed rather than having to wait until the very end when the situation could be much worse.

Keep in mind that if your home has been passed down through generations already then using an equity release puts it in jeopardy. You may want to consider other options so that the home will not have to be sold. There is at least one option in that you have a life insurance policy that can cover the full lifetime mortgage payment. In this way the house remains. Also ask an independent adviser about the different clauses you can use to protect the house, inheritance, and ensure a good deal is made in your favour because it is possible to find the product that best suits you.

The Silver Lining
While there is a drawback to equity release in terms of inheritance there is also a small glimmer of hope that something might be left. While the home will not be kept since it is used for the repayment, you can focus on the valuation fluctuations that happen in the market. Right now the news has been pretty bad for financial products, but things are certainly looking up. The second recession is definitely over and London is seeing increases in property value. This also means that your property throughout the UK is on the rise in value. As property value increases again, so does the potential amount left for inheritance.

Ask about equity release schemes to find out how your retirement can still be a great help to your family members. Also consider how your retirement can be easier on you with such products.