If you are approaching your retirement years and you are anxious that the income afforded to you by your pension fund will not be sufficient to meet all of your requirements, then you may well be considering releasing equity from your home.

Equity release is a popular and, indeed, effective means by which to supplement your incomes during your senior years. This kind of financial plan allows you to take out a loan using your property as security while at the same time remaining in occupancy of your home. Because it is designed to extend beyond your lifetime, you will not be required to repay the debt. When the loan comes to term, the lending party will simply sell your house in order to collect payment.

While, in many ways, this kind of policy appears something of an ideal solution to the problem of a sparsely-funded retirement, it is not without its flaws and disadvantages. Before you dive in and sign up for an equity release scheme, it is a good idea to get some good, solid advice from a charity designed especially for the purpose of guiding people safely through the business of accessing the capital tied up in their assets.

While equity release will increase your income, it is important to remember that it does so at a price. For example, people who have released maximum equity from their home will not be able to leave an estate to friends and family. In addition, taking on this kind of scheme risks saddling your next of kin with a sizable debt in the future.

In short, if you are considering equity release as an option, you will want to make sure that you go into the business of sourcing a good scheme with as much independent advice as you can. Find yourself a well-qualified advisor specialising in this field; you will benefit from the guidance of an experienced professional.