Pension plans are hot topic of discussion at the moment, which has seen many people worrying about their retirement years and whether they will have the means to fund it.

In a bid to find a new way of funding retirement, many people are considering the option of equity release, a way in which you can release cash locked up in your home to spend as you wish. Yet how does it all work, and what is involved? Read on to find out more.

According to the Chartered Institute of Personnel and Development, (CIPD) over 50 per cent of employees are worrying that they may not be putting enough towards their pension.

The survey published showed that over two thirds of workers in the private sector had not subscribed to a retirement savings scheme compared with just twelve percent of public sector workers.

A further forty-four percent also said that they would contribute to a pension scheme if they knew the amount they would require in order to live comfortably during retirement.

Survey-goers also said that many people would be more than likely to contribute to a pension scheme if they knew more about how much they needed to save each month to make this amount achievable, as well as regular updates about the value of their pension, giving them more of an incentive to save.

With so many people realising their pension pot isn’t as big as they would’ve hoped; equity release has been the topic of conversation across many households. While equity release has been tarred as a negative move in the past, many are realising the benefits involved with equity release and how it can be a beneficial move for many.

Equity release at a glance;

Receive a tax-free cash lump sum or income,

No monthly repayments to make,

Freedom to spend the money in any way,

Stay in your home for life, or as long as you choose,

Range of plans available,

The value of your estate is reduced,

Entitlement to state benefits may be affected.

To qualify for equity release you need to be;

A homeowner in the UK,

Aged 55-95,

With a property value of £50,000 or over.

If you are considering equity release as your next option, then why not use an equity release calculator? In seconds you can find out how much you could release from your home. Equity release calculators are free and very easy to use. Simply fill out the form providing your date of birth, property value and contact details and up will pop an estimated amount of how much you could release from your home.

Equity release is a big financial commitment. It is advised that you speak to an independent financial adviser before you release any cash from your home. That way you can learn more about equity release as well as receiving tailor-made advice to suit your circumstances.