What Is the Question More Retirees Are Asking?
Increasing numbers of retirees and people approaching retirement are asking what equity release is. There is a lot of gossip and general hearsay, but if you have questions about your looming retirement financial shortfall, you need answers from a reliable source. What is suitable for one person may not be suitable for the couple next door. Seek sound financial advice before taking the plunge to release the equity in your property.
For a myriad of reasons, increasing numbers of people are entering, or at least approaching, retirement with unprecedented levels of personal debt. The debt may be outstanding mortgage, personal loans, credit card balances, and hire purchase loan agreements. Due in part to the ease at which credit was available in the past 25 years or so, this generation is in an unprecedented situation.
As pension pots fall in value on a daily basis, the Bank of England is fueling inflation by printing money. Saving money in regular savings vehicles is effectively costing money to do so, and retirement for many is looking bleak. Over recent years, the trend of refinancing and borrowing larger loan-to-value ratios has led to many potential and current retirees struggling with retirement.
And yet it doesn’t have to be this way. Many retirees are sitting on an equity nest egg which, with the help of a duly licensed financial adviser, can release the equity contained in that property and help finance their retirement.
In most cases the sum released is tax free, although it is essential to make sure with the advice of a professional advisor. Once the money is released via any one of the myriad lenders which have equity release schemes available, it can be used how the person receiving it sees fit.
In many cases, the equity can be released from the property and the owner is able to remain in their home for the long term future. In other cases, the home owner can choose to sell up completely and downsize to a smaller property depending on the personal circumstances.
Most people entering or approaching retirement worry for the future, given the current debt storm which surrounds us all. While many are not cash rich, though, they do have a store of wealth from which they can draw from. That wealth store is their property, and even if there is an outstanding mortgage amount, it is not an insurmountable issue to the release of equity.
One factor in retirement planning appears to becoming more the norm. There is, and will continue to be, an increasing number of homeowners all of whom will automatically include their property as an element of their retirement income planning. If you haven’t done so and you have a property which has stored value, check out today how equity release schemes can ease the burden of retirement and lessen the impact of falling incomes and rising costs.
Graham Green is a freelance writer and researcher for several finance related websites and is constantly researching the latest in news about mortgages, credit news, general finance. He has regularly read with interest the information at whatisequityrelease.com.