More older people may have to look to equity release as their jobs and pension plans are hit by the continuing recession.

Workers aged 50 plus are afraid they will be forced out of their jobs due to their age and worried that their retirement incomes will be decimated by the recession, new research from Help the Aged and Age Concern has revealed.

More than one in four over 50s questioned in a recent survey by the charities fear that their age will see them forced out of jobs if their employer decides to reduce staff numbers due to the economic downturn. Recent figures showing that over the past year the number of unemployed people aged 50 plus has risen by nearly 50%.

Many are also seeing their pension prospects hit hard by the downturn: the charities also found that nearly half of respondents said they are less confident than six months ago that their pension and savings will provide them with a comfortable standard of living in retirement.

Michelle Mitchell, charity director for Age Concern and Help the Aged says: "These figures paint an extremely bleak picture for millions of over 50s whose working lives are at risk of being cut short by the recession. Those who do lose their jobs will face significant obstacles to getting back into work, leaving them financially vulnerable as they approach retirement. For many over 50s, one of the lasting legacies of this recession will be a retirement blighted by poverty."

If you are worried about your earning potential or the size of your pension, you should be considering investigating equity release. Equity release allows you to take some of the equity in your home and spend it how you wish. This might be for home improvements, medical care, your family or the holiday of a lifetime.

It's not for everybody, but there are many equity release products for a huge variety of borrowers. To see what you could benefit from, talk to a qualified mortgage adviser.

SOURCE: Age Concern, 27/05/09

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