Retirement seldom comes with a smile on the face of the individual expecting it. It is either
accompanied with a frown or a sense of apprehension. The situation persisted for quite some time before the market came up with the retirement friendly options to resolve the various problems pertaining to the post retirement phase. One such finance vehicle is that of the equity release. The retirement equity release has in fact taken quite a considerable precedence in the sphere of solutions to the fund related problems. It has in reality quite effectively catered to the diverse needs of the retired individuals and allowed them a new lease of life for living and not just spending it anyhow. This option has relieved the aged individuals from the burden of financial crisis and the indignity of beggary to support the rest of their life.

The retirement equity release as the name itself suggests can only be availed after the
retirement phase commences in the life of the respective individual. The requirements to be
eligible for equity release are as mentioned below:

•The retired individual must be at least fifty five years of age.

•The retired individual must have his or her property, in lieu of which he or she will be
given the amount, in prim and proper shape and condition. Failing this criterion can also
lead to the rejection of the plea pertaining to the same.

•Finally the retired individual must have a clear credit record. This is necessary because if
the individual has any outstanding credit the amount entitled to him or her may suffer a
reduction.

The equity release though beneficial on an overall basis is not completely devoid of demerits. The disadvantages of the retirement equity release are as follows:

•It heavily penalizes the retired individual in case of a midterm withdrawal of the deal
struck between the individual and the respective authority.

•It restricts in the sense that it does not allow too much scope to the retired individual to
invest in more income oriented investments namely the shares and the stocks.

However with respect to the entire hoard of advantages delivered by the retirement equity
release, the disadvantages come across to be something that can be easily overlooked. The merits of the equity release are:

•It allows the retired individual to stay in the same property that is being used to obtain
the added source of income.

•This finance vehicle also aids the heirs by reducing their inheritance tax amount.

•It allows the retired person to obtain the required stream of income to resolve the fund
problems and bridge the gap created by the inadequate pension amount.

•It does not ask for any repayment rather retrieves the amount from the resale val8ue of
the property, enabling the retired individual to live a life of peace and comfort.

The option of equity release not only allows benefits to the respective retired individual but also to his or her spouse in case the name of the same has been included in the deal. Therefore the retirement equity release allows the retired individual the perfect vent to their financial frustrations.