If you were wondering what the true impact is of the current economic crisis and austerity measures, we now have a much clearer picture on how the finances of many families are suffering in real terms. It has been revealed that family finances are likely to equate to the levels we had as far back as 2005 – that is a fall back to levels 9 years ago. The recession is over, but there are still struggles as the economy slowly gains momentum. For retirees it is time to think about equity release and if it makes sense to take out this product to help stimulate the economy and live an easier retirement.

Salaries and Cash Flow
The reasons behind this are mainly due to the fact that salaries are either rising at pathetic rates, or for the most part, are actually continuing to fall when more and more companies are struggling to keep their heads above water during these hard times. You also need to bear in mind that taxes and cut-backs are paying a weighty toll on family incomes.

Cash flow is still not as stimulating to the economy as it was prior to the two recessions. In fact there is a larger emphasis on saving money right now. It is the first time in more than a dozen years that saving money has been important. When you consider the troubles the economy is facing right now and consider your retirement you may be worried.

If you are on the eve of retirement age such as 65, still have a mortgage, and worry your pension is not going to cover expenses consider your options.

Retirement Funding Choices
As a person heading in to retirement, you could hold out a few more years to try and save a little more towards your pension. Many also consider retiring, but hiring on in a part time position. Part time jobs are difficult right now though so you might not be able to find something you could enjoy as a partial retirement.

Another choice is to sell what you own by downsizing into another home, fewer cars, and other things you have. You could start to live a moderate life with few entertainment options. You may not be able to take those holidays you waited for given your pension and retirement funds, but you could live comfortably.

Your other option and one that continues to gain notice is releasing funds from your home to live on. With this in mind, it is no wonder that people are looking to measures such as equity release plans to tide them over. We all hope for better years in the future and the mentality seems to be that we need to do all that we can to protect our way-of-life and ensure that our family does not suffer too much. These plans release cash from your home turning your cash poor situation into one that is comfortable. Of course you need to be property rich in terms of having enough equity to make this concept plausible.

Home reversion and lifetime mortgage choices help you gain equity from your home to live on comfortably. You can still downsize and maintain a modest life, but you also have rainy day or holiday funds. With plenty of benefits such as tax free cash, using it as you want, and helping family it can be the perfect solution.

There are disadvantages to these plans, of course, but you can also benefit. It is a choice of what is right for you and how you want your retirement to be like when the job situation is not looking so great. The whole point is that you might be able to hold on and not retire versus not using equity. If the economy and employers won’t sustain this option then you have to look for alternatives.

The Shocking News and your way around it
This shocking statistic is definite evidence of the fact that the austerity measures implemented by the Government are hitting every household much harder than was originally forecast. Many people were opposed to such a stringent programme being introduced to take care of the debt the country is in; they favoured a longer-term and far less painful plan.

This is all a catch 22 situation at the moment. Many people are so grateful to still have their role of employment at the moment that they would not dare to rock the boat, so to speak. It would appear that employers are fully switched into this mentality and for the most part, are taking full advantage of this. So you could take advantage of equity release and retire on time.