Equity release 'should be made easier' as way of paying for care

Posted on 24 February 2011

Equity release could be a linchpin of the government's policy on paying for care for the elderly, experts have said.

FT Adviser reports that Andrea Rozario, director general for equity release trade body Ship, said money tied up in houses can help to fund people's long term care plans.

Meanwhile, Saga director general and pensions expert Ros Altmann said domiciliary care is often cheaper and more desirable than residential care.

The comments followed calls from the commission preparing reforms on elderly care for insurance firms to create schemes allowing older people to release equity instead of being forced to sell their houses.

"There is now an acceptance that if you have property and you need care, it is unreasonable that the state should help you pay for it," Vanessa Owen, head of equity release for LV=, told the publication.

Recently, Andrea Rosario underlined the importance of older people taking expert advice on equity release before making a decision, as the move is "not going to be right for everybody".

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