With times getting tougher for pensioners, many haven’t the sort of income they always hoped their retirement would bring.
Despite the Chancellor of the Exchequer making some radical changes to the way people draw their pension in recent budgets, for some, the way they draw their pension isn’t the question, their pension itself still won’t be enough for them to live the retirement they had hoped for.
At a time in your life where more people have free time in which to pursue their interests, spend more time with their families, and undertake DIY projects around the home, ironically their income doesn’t match up.
But it’s not all doom and gloom, equity release could be the future…..
With property prices increasing significantly over recent years, the Equity Release market is growing as a result of more people looking to their property, not their pension, to fund their retirement ambitions.
Usually you would have to sell up and move to take advantage of this growth, however, with equity release, you continue to own your home, are able to live in it and can access some of the equity that has been building up over the years.
Although Equity Release can be a good way of helping you to fulfil some retirement dreams, by turning some of the equity tied-up in your home into tax-free cash, the use of equity release is not only being spent on funding retirement now – over a quarter of the money drawn is being spent on the family.
- Many use equity release to gift family members, which allows you to decide when you leave an inheritance. Perhaps there is a big life event coming up for a family member that could use a financial boost, such as weddings, education fees, property deposits or business investments.
- Half those releasing equity do so for home improvements and 1 in 3 use it to realise their travel plans now that they have the free time.
- 40% use Equity Release to clear a lingering mortgage. Those that do, enter retirement without mortgage repayments to worry about and with freed up monthly income to spend more enjoyably.