How much we each have saved for our retirement is a big topic at the moment.
In 2012, the government, responding to concerns about the state of our savings, began to roll out a scheme known as automatic enrolment, which will see everyone offered a workplace pension, between now and 2018. There is currently a high profile advertising campaign on national television promoting the new initiative.
The reason for the scheme is that many retirees were finding that their pension income was much less than they expected, or could even live comfortably on. A report by Scottish Widows found the average pension income most people would be comfortable living on was £24,500, but also that the average saver would currently be in line for a pension of just £13,000 per year.
Automatic Enrolment will help this generation of workers to ensure that they are prepared for their retirement years and that they will be able to live out the retirements they have always dreamed of. But what if you are already approaching retirement with a below average pension? Or what if something significant happens, meaning you need more money than you had planned for? Or if you want to pursue a major purchase; a dream holiday, or helping your grandchildren onto the property ladder?
In circumstances such as those above, where retirees are finding their pensions stretched, more people are turning to equity release as a way of funding their retirements, or the purchases they wish to make in retirement.
A report in The Guardian revealed that more equity release schemes were completed during the first half of 2014 than at any point previously. The attraction is clear: free up some or all of the money invested in your property, either as a lump sum or as ongoing payments. For those unsure about whether they will have enough in retirement, equity release can be an invaluable option to have.
In order to answer the question on whether equity release is right for you, it is important firstly to consider what your retirement income will be and whether you will be able to achieve all of your plans and goals. After you have considered this then please do feel free to get in touch with us with any questions you have about equity release as a solution. We will be happy to talk you through your options and how equity release works, exploring together whether it could help you to live a more comfortable retirement.
THINK CAREFULLY BEFORE SECURING OTHER DEBT AGAINST YOUR PROPERTY.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT.
THIS IS A LIFETIME MORTGAGE. TO UNDERSTAND THE FEATURES AND RISKS, ASK FOR A PERSONALISED ILLUSTRATION.