Seniors May Soon Swap Equity for Professional Care

If you’re still relatively young, then you might not spend a lot of time thinking about the future, and how you’re going to pay for care when you can no longer live independently. Unfortunately, this concern can become a huge problem for many homeowners who need support when disability, problems with mobility, and other issues get in the way of living a safe, independent life.

If you can’t afford to pay for the costs of long-term care out of your pension or savings, then some experts are beginning to suggest that home equity release might be the simplest way to get the support you need. In fact, the central bank of Malta has begun to recommend that elderly individuals tap into their assets when they don’t have the cash required for professional care.

Asset Rich, but Cash Poor

Today, many elderly individuals are rich in assets, like their homes, but poor in available cash. They’re living on modest pensions, even if they’re located in large, or expensive homes. This can create some significant problems with finding the money for long-term care. After all, selling a home outright isn’t always as simple as it seems.

Some financial authorities believe that just like a repositioning sling, or a wheelchair, a home equity release plan could be another tool that elderly citizens use to maintain their wellbeing in the future. The bank of Malta suggested that coming up with a new way to release part of the equity in an individual’s home could be the key to raising the housing supply for the area and reducing the amount of pressure that’s placed on long-term care institutions funded by the state.

Overall, a focus on equity release could be the answer to delivering better living standards for the elderly and giving them the support they need to continue living a happy lifestyle.

Releasing Equity from Homes

Of course, finding a new equity release solution for elderly citizens is something that will need to be done with sensitivity and care. There are regulations that need to be considered, and financial institutions could have an important role to play in deciding how these new solutions pan out. The central bank governor in Malta suggested that the rental market could be another area that requires attention.

He noted that there may need to be more legal clarity about the obligations and rights held between tenants and landlords, and the steps that need to be taken to help the market operate successfully in a formal economy, with duly registered rent contracts. It may be necessary to make changes to the social housing market too, so that individuals are empowered to find a solution that suits their needs, rather than living passively in whatever environment might be available to them.

At this point, it’s hard to know for sure what the next step might be for ensuring quality of life for elderly citizens with mobility issues. However, it seems certain that these individuals will need new ways to access the money that could be tied up in their assets.