AIBU to wonder why a pensioner struggling financially would not use housing equity?

I agree with this. If a working adult was living beyond their means then everyone would be saying they need to make an active decision to change their circumstances, yet when it’s a pensioner we are all expected to bring out the violins. Wanting to leave as much money as possible to the next generation is a decision that so many pensioners are actively making, and with that comes consequences.

If I was in that pensioner’s position I would sell up and rent a nice retirement flat, there are plenty going.

Many older people would struggle significantly with the stress and practicalities of moving.
Older adults rarely do well when they have to move - unfamiliar spaces means a much higher risk of accidents, eg trips and falls. Much harder to learn the new area and make new links as an older adult. And that's before thinking about the mental aspect of leaving somewhere that has been your home for many many years.

Because equity release is a poor financial choice.

I have heard awful stories about equity release schemes, and how badly old people have been treated, @Powerbungalow. Plus the house is the person’s security - if they need to go into a home, selling the house might mean they can afford somewhere nicer. And if they don’t need to sell it to pay for care needs, they know they will be leaving a substantial legacy for their children.

This is what every widow did back in the day taking lodges being a landlady. It’s good to hear someone else wants to do it.

Downsizing seems a good idea on paper if someone is still fit and able.

But the options open to someone who needs walking aids/wheelchair space are greater for someone living in a larger property than if they had downsized to smaller property.

In a larger property you could potentially live downstairs easier and have bedrooms still available for family/overnight carers if needed. You have likely got more space to manoeuvre on a walking frame or in a wheelchair.

I would suggest to anyone of my age - early 60s - to think about whether you do want to stay in a larger family home long term, and consider what adaptations might be needed (downstairs bathroom for example). You can't cover all eventualities, but a bit of forward planning while you are still working could be very helpful long term.

I have seen first hand the difficulties of older people not wanting to move from the home they have lived in for years, but the home is now not meeting their needs and almost becoming more of a prison as they can't manoeuvre around it, or get down the steps into the garden etc , and their quality of life deteriorates.

Selling and buying a smaller cheaper place would make sense but doesn’t make a good news story. If you are in certain parts of the country owning won’t necessarily mean you have much capital but for most people you are sitting on hundreds of thousands, even more, there’s no justification for talking to journalists about your finances if you have lots of capital, you need to get good advice starting with age U.K.

My parents considered downsizing

But .....

Couldn't agree what they might like to move to

Cost of stamp duty, moving etc put them off, as they didn't want to move to a smaller property and not raise cash in the process. They felt better to stay in the bigger house so that, if they ended up moving to a care home, they ould raise more £ by selling the larger house in order to pay care home fees

And the prospect of downsizing was v daunting for them. I think betterto move in your 60s when you're still young enough to handle the physical and emotional aspects of moving house

As opposed to people who have relied on the state for ever?

One of my friends has just moved house prior to retirement, oddly she has gone for a bigger house with a much bigger garden and steep steps but she is able bodied and it is her choice. That aside she has done it at the right time in the sense that the move with all the expense, stress, upheaval nearly broke her at age 65 and being single she handled it all by herself. That would be a huge challenge for anyone really elderly. She moved because like me she lived in a rough area and had had enough and also realised that it was now or never in terms of age as it is such an all encompassing and very expensive process.

Also why does she keep giving people lifts? If she’s that skint she’d ask for petrol money.

Equity release is a shit idea, but there’s still downsizing. And if people don’t want to do that either, what else do they expect? The government to bankroll them whilst they sit on a valuable asset they do nothing to realise the value of?

I did look her up and she's been featured on TV and in other articles like this for years. It's all slightly odd and I don't think she is genuinely as poor as she makes out.

It's not that straightforward or easy, it is like taking out another mortgage in a way. I've looked into it.

Options that may seem difficult are still options. My parents sold up their family home for a flat, not particularly to save money but because the house, garden etc was becoming too much. I find it hard to muster up sympathy for someone who has options but doesn’t want to take any of them. Which is fine but put up with the consequences of your choice without moaning.

She's 77. It's on the BBC news online.

I don't know how old this person is but moving g in later years is extremely stressful. Some may not be capable of sorting out all paperwork involved with selling. Some may not be able to physically pack up a lifetime of things to move to a much smaller property. Some may fear uncertainty of renting. Many may have made friendships and local support network and be afraid to lose that if theyove away. It's different if the person has close family who can do a lot of this on their behalf.

I take that story with a pinch of salt.
If you read the details (and she's been featured in many other media features over the years) it's maybe not all it seems.

There is info on her around which suggests she is not so poor as she makes out- she should have the state pension, pension credit is she qualifies which will then include lots of other benefits, and some of her late H's army pension.

She's spending £50 a week on fuel for her car.
How does she need to spend that much or do so many journeys for herself?

My mum is in her 90s and lives on the state pension and a little bit more from my late dad's pension. She eats well, doesn't drive, buys clothes, etc.
She is not rich and never has been. her council tax is close to £2K pa and her utility bills are around £2K. But she manages pretty well.

Going back to the question, equity release is not always wise and you lose money.

Equity release broker fees are high and you normally need to pay them before you get the lump sum.

It's not the worst scheme in the world. You cannot be evicted due to non-payment as you can choose not to pay anything while you are alive, but if the roof falls in and you don't fix it or you fail to insure it or pay council tax then there are consequences.

I think I would be tempted but only if I lived alone with nobody to leave my home to.

Im really interested to know where you live that a 5-bed house costs just 80k more than a 1-bed flat?

We looked into care homes for my MIL. The price was truly shocking. I don't think people understand how expensive it is until you start looking.

Fortunately, money isn't an issue

But it is in the case in the OP.

I agree that it's much harder for elderly people to move than it is for others.

It's not insurmountable though, and if the alternative is to stay where you are and be completely miserable because you can't afford to cook food, then the choice is a simple one.

I agree with other posters that equity release is not a good idea.

She does have options available to her however that many don't.

She could take in a lodger.

She could sell and downsize.

She could sell and rent.

If it's not practical or feasible to find her own home, then if she has family, she could move in with family and rent the house out or sell it. (Yes, I know the general reaction on here to a parent or in law moving in is one of horror, but I'd rather live with my mum and have her drive me insane than have her living in a cold house going hungry because she can't find anywhere else to live).

Or if she has family, she could ask them for help paying the bills.

If you own an asset, there is absolutely no point sitting on it and starving yourself, making the last few years of your life miserable. You can't take it with you.