Charity doesn't begin at homeWednesday 27 August 2008
Charity doesn't begin at home
- Nearly three quarters of children approve of their parents releasing equity from their home
- One fifth of younger people would use an inheritance to get on the property ladder
- Speedboats and charitable donations are the purchases children most frown upon
Paying off your mortgage, saving and passing on an inheritance has been the objective of many of today's over 50s. However research published by Saga Equity Release* shows that 90% of children do not expect an inheritance and 72% are happy for their parents to use the equity from their home to enjoy their retirement…within reason.
Close to two thirds (62%) of children surveyed don't mind how their parents spend the money from equity release. However there were some purchases that children felt were just too frivolous. One fifth (18%) would not like them to squander it on a speedboat and 16% would disapprove of 'their inheritance' being spent on charitable donations.
The survey also found that men are more resistant to their parents spending money from equity release, with close to 3 times as many not happy for them to use it for medical treatment or heating and fuel costs than women.
Whilst generally approving of their parents spending their own money, 68% of children surveyed did concede that their expected inheritance would make a difference to their life. And, historically, with house price increases way above inflation, it is perhaps less surprising that 18 to 34 year olds plan to use any future inheritance to get a foot on the property ladder (20%). Whilst for this age group it's unlikely they will inherit in the near future, it could be possible for parents to release equity and give their children that all important deposit when they are able to really appreciate it. In fact 28% of this demographic openly admitted their desire for a 'living inheritance'.
Based on the UK average house price, 177,351**, a 65 year-old could release up to 55,000 from their property, which could be a substantial boost onto the property ladder for their children or provide a comfortable sum to help enhance retirement
Andrew Goodsell, Chief Executive of SAGA Group, commented, "The new generation of retirees are bucking tradition and no longer believe their children have an automatic right to inheritance. They are using the money from equity release to enjoy their retirement."
Equity release is available to homeowners over the age 60. Homeowners can access a free guide to the financial options available, 'Affording the Life You Would Like in Retirement' or use Saga's online calculator to show the maximum amount they could potentially release from their property by visiting http://www.saga.co.uk/equityrelease . Alternatively, to request a copy of Saga's guide to equity release or to book an appointment with an adviser please call 0800 015 6256.
For more information please visit www.saga.co.uk/equityrelease or call 0800 015 6256.
* Survey carried out by Opinium Research for Saga Equity Release between 17 th and 21st of July 2008 amongst a UK representative sample of 2209 respondents.
** Halifax House Price Index July 2008
For further press information please contact the Saga Press Office on: 01303 771529.
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