Property wealth funds elderly care for over a million

Over one million families have sold their homes in the last five years to meet the cost of paying for elderly care, a new report has revealed.

Pensioners faced with shrinking savings pots and swelling care home costs have been selling their homes to make ends meet, as residential care fees show no sign of subsiding. Costs have risen by 9.3% in the past two years alone to an average of almost £30,000 per annum, more than double an average older person's savings.*

As traditional savings fall short of the increasing financial demands of elderly care, an increasing number of retirees are turning to their most common and valuable asset - property - to cover costs. Indeed, more than a quarter of retired home owners are already actively planning to use their home to fund their old age.

While using wealth tied up in housing to cover care costs can be a savvy financial move, it's important to remember selling isn't the only option. Equity release provides pensioners with an alternative way to access the funds tied up in their home. Rather than selling the family home, equity release creates the option to use part of a home's worth without packing up and moving.

As economic circumstances tighten the belt on our available capital, equity release can play a pivotal role in financial planning and relief. Regular cash withdrawals can be made or loans can be provided based on the value of the house, depending on what best meets a customer's need. Equity release advisers will be able to help find a solution that fulfils homeowners' financial requirements, without the extra costs and stress that moving can cause.

*Research from Prestige Nursing+Care

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