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

So you mean they would have to pay for shit they need with their own money rather than government money.

Well cry me a river.

I never saw pensioners up in arms when child benefit became means tested

It’s not always easy to downsize. Many older people want a bungalow but they are quite scarce and can be expensive due to plot size. Or will need a large amount of work and updating.

Moving is stressful, especially if you are on your own

I have never heard good things about equity release so would never recommend that

Selling and renting would be insane. You have no security in renting so could end up having to move multiple times.

A lifetime mortgage is insanely expensive. If you decide to downsize or move somewhere more suitable as you get older, you will more than likely not have enough equity to do that.

Downsizing could be an option if the finances make sense but they don't always.

This, i have relatives that took awful advice with an "equity" company now they don't own their house the company does, i don't think older people should be renting either it would cost them a fortune.

Equity release though if you are hungry and shivering makes sense.

If the family want the house why don’t they pay her gas/electric, you know look after mum whilst protecting their inheritance. A cold, unmaintained house is worth less after all and clearly there is no cash inheritance to help.

If she releases equity it will make her ineligible for a lot of means tested benefits and help. Basically this expectation punishes those who have saved and made provision for their old age over those who have lived beyond their means during their working lives. You could have two families on similar incomes throughout their working lives, one family spends on expensive holidays, cars, clothes, entertainment and perhaps has a non working spouse and / or someone who is self employed and haven’t made sufficient provision for their retirement. Why should those who have been sensible be penalised?

It's her home and maybe all she's known for a long time. Why leave a secure home for the uncertainty of renting?
I get your point about releasing equity but for a lot of people their homes are emotional and they aren't seeing them as a financial asset that could be realised.
I've been trying to get my parents to downsize for years, but they are very attached to their home and just won't leave it no matter how much their lives could improve if they do so.

Not saying it's the case for the woman you're talking about op...but I have known many elderly people who are absolutely convinced they are poor when they're not. My own mil would refuse to put the heating on and head out in the evening just to buy yellow stickered food....she owned a house outright and had hundreds of thousands in the bank. I blame the medias obsession with the poor pensioner narrative

We would need to know a LOT more about the house, its size, value, saleability, re-mortgageability etc.

Equity release only allows a % value of the house to be liquidated. She might live in a tiny house in an area where property prices are low and any capital would make her ineligible for Pension Credit - for example.

The insecurities and very high rents of the private rental market are hardly a sensible move.

Single women pensioners are so often managing on much lower income than men, and being solely responsible for utilities and other overheads on a single pension income is very different to managing on two pensions.

But hey....wealthy boomers, eh?

Because it’s the certainty

no matter what happens no one can make her homeless - it’s a mental state

they can turn electric and gas off
but she still has a home

it seems crazy to me as well, also that she had years to think about money as you got older, the maintenance on your property and income in retirement. But they were her choices. If she chose to stay in an expensive to maintain property, spent everything whilst she was younger, didn’t save, I guess people think the state will bail them out every time. This I can’t understand.

But wanting to continue to solely own your house I can.

From my perspective selling and renting means you lose all security. Any day that letter can arrive telling you you've got however long to find somewhere else to live.

Equity release is awful and if she wants to leave anything for children/grandchildren, equity release will eat up any profit left in her home.

It may also have been the family home and she can't bear the thought of moving somewhere else.

Biggest con going.

Many reasons, moving at one of the more vulnerable times of your life, leaving a support network can be incredibly difficult.
People worried by the time they have sold, paid fees etc that their money wouldn’t be enough to last them if they live longer than expected.

I can definitely see why she wouldn't want to move house. It's extremely stressful and costs a lot of money in itself. As for the other option, who knows. I guess they just wanted a news story about someone struggling and this was the first one they found?

Anyone should be wary of signing over your home to someone else to release cash

renting insecurity isn’t worth the risk

selling costs, and the stress of it can be too much for older people