Http://www.sell-my-pension.co.uk/pension-release/

Visit website PENSION RELEASEInvolving in financial planning, especially for your retirement always welcomes a tricky situation. Nevertheless, one increasingly common solution is equity release.

This might provide a short-term solution to divorcing during the credit crunch. As stated previously with lower property prices and low numbers of house sales are making it more difficult for pensioners who are separating to sell their home.

This incurs difficulty in making a division of partners wealth, or those who do sell could find they get 22.5 per cent less due to the housing market falling to such a great extent.

Equity release could provide an alternative option to an immediate sale of the house. This works by preventing sale of the house immediately &amp; delaying it until a time when hopefully house prices will have escalated back to the levels of 2008. It would prevent divorcing pensioners from being even worse off as a result of current economic conditions.

Therefore, the equity release might provide a solution which allows them to separate while avoiding further financial loss until the housing market picks up again.

Equity release schemes could also provide sufficient income for one half of the couple to move out and rent another property to live in, while the other remains in the property. This alternative arrangement could also allow for the family to retain ownership of the property, as the loan can be paid off at a later date.

However, this would be dependent on age and property values as the amount that can be taken out on such equity release schemes is limited. Therefore, the older the divorcee's are the more that can be released &amp; also more likely to be a solution to the capital inadequacies that arise.

It has also been stated that female retiree's suffer the greatest financial loss after divorce. It has been estimated they could lose six per cent of their annual retirement income &amp; this can be attributed to women having less retirement provision in place and fewer sources of additional income.

Coupled with these difficulties is the reduction in the savings interest rates and pensions that has already reduced the amount of monthly income pensioners have. Therefore, the higher cost of running a household budget on one income in retirement reveals the hardships that could be experienced by divorcing in retirement. Would you like to save &pound;30 000? That is exactly what pensioners could save by choosing the right Equity Release Scheme.

Interest Rates for Equity Release Schemes have fallen from 8 to 6 percent, approximately, because of falling rates generally. The thing is, though, that the rates are fixed at the outset of the deal, so many people who have an existing scheme will have to switch providers in order to benefit.

The difference this makes can be tremendous because Equity Release borrowers do not make monthly mortgage payments. Interest is added to the loan each month instead. This has an accumulative effect with interest being added to interest so any increase or reduction in rate makes a far greater difference over time than it would to a normal mortgage borrower.

Equity Release Plans are set to become more popular because we have an aging population who need to have a better income.