Retiring during a recession can be extremely stressful as not only are you entering a time of reduced income you are doing so at a time when government is introducing pension reform itself to cope with the uncertain economic situation. It is increasingly likely that a large number of pensioners will not be able to support themselves financially during their retirement.
One solution to supporting yourself during retirement is to realize the equity trapped within your own home. Often pensioners own property that they reside in. It is possible to release some of this equity either as a lump sum or through a form of monthly income using either an equity release scheme or a mortgage. This allows pensioners the benefit of living in their own home and having the security of knowing they will have a roof over their heads yet at the same time benefit from some of the money they have in a sense saved within their house.
Various financial providers are willing to offer mortgages in retirement such as the Halifax pensioner mortgages. Alternatively there are hundreds of equity release scheme providers.
A mortgage or an equity release scheme can help pensioners raise a large cash sum during stressful economic times. Or on the other hand an equity release scheme can enable you to receive regular monthly payments as a means of long-term financial support.
It is important to realize however that taking out either a mortgage or an equity release scheme will have an impact upon your financial situation and should never be entered into without first securing independent financial advice.