As many struggle to keep themselves afloat in the current environment, it is hard to imagine the strain that some people who support not only their children but also their parents, must feel. Financial experts have termed people in this situation as being part of the sandwich generation i.e. supporting both the kids and parents. This segment typically comprises of middle aged individuals who have reached a stage in their lives where their children are at school or university while their parents are in retirement. Although most have achieved a degree of financial security, with the costs of living rising, it seems that they are most likely to feel the pinch from every direction.

It is no wonder then that people in this situation are looking at a variety of ways to generate extra income to help them get through this financial predicament. One option many people are opting for is equity release. According to Hodge Equity Release’s latest reports there has been an increase in the number of equity release related enquiries by as much as 75% over the past few months, indicating that the popularity and awareness of this product is on the rise.

However, one of the drawbacks of equity release is the potential and significant impact on inheritance. So it becomes vitally important to weigh up the short term benefit of the extra cash against the possible long term implications of taking out such a product. As it may be that the very people it benefits now may suffer later i.e. the children.

What is obvious is that it is worth thinking long and hard before entering into any equity release agreement. Whatever decision you make, make sure it is an informed one, considering all the alternatives and potential financial consequences of your actions.