Pressures are increasing on our retired population. They depend on their life savings to financially help them with their day to day living expenses. With interest rates decrease the value of their savings is falling.
There could be a financial shortfall ahead for those due to retire soon. Pension fund values have decreased during recent months due to the downturn of the economy. Prospective pensioners will need new avenues of funding to survive ancient age.
As Life long pension and investment values are falling pensioners are looking for new ways to fund their retirement. The rising prices of fuel and food are taking the toll on bank balances making it hard to afford the lifestyle they have saved for.
Lifetime or Reversionary Mortgages can release money tied up in homes. Before taking this route you should thoughly research the products available and it’s strongly advised that you seek advice from an Independant Financial Advisor as they don’t meet everyones needs.
Equity release allows you to only make use of a small percentage of the value of the property 35% -55%. The amount depends on variables like age, health and house value. Be careful if you are on means tested benefits or if you receive help to pay for your care, Equity release may remove your eligibility
A negative equity guarantee is always a excellent thought with Equity release. This means even if the value of the house drops significantly you will never owe more than your house is worth. Use a provider who is a member of SHIP (Safe Home Income Providers) and well known or recommended.
There can be charges when setting up Equity Release Schemes. These include early redemption penalties which are an vital factor should your circumstances change and you need to exit.
Equity Release Schemes are regulated by the Financial Services Authority unlike the Sale and Rent back schemes which are not and often get confused.
Equity release can be very complicated so it’s always a excellent thought to seek independant legal advice. This will allow you to obtain all the facts and make an informed choice.
Are Equity release schemes as excellent as they sound? Do they deliver? The answer is YES. You need to research them thoroughly and find yourself a specialist advisor who deals with them on a regular basis and is up to date with all the latest facts.
In this current economic situation I would reckon the number of people incorporating equity release into there retirement portfolio would increase significantly.