Advice for Retiree

Archive for the month “March, 2013”

Equity Release Scheme to Support You through Thick and Thins

image courtesy: http://goo.gl/JFr0S

image courtesy: http://goo.gl/JFr0S

According to a report, baby boomers cover a giant portion of population in UK; almost 78 millions of them form the community. Eldest among them came in 1960s and are on the verge of retirement.

Their growth was in the era, when standard of living was on the rise, but reason Great Recession to whirlwind their financial security and destroyed many nest eggs. In the present times, they face several issues in leading a comfortable lifestyle.

The baby boomer generation is between the 48 to 67 age group. Some of them are already retired or about to retire, whereas some are getting their kids through colleges.

This is an age, where a little lacking on the financial front can backfire in the retirement years. The volatile economic situation is worse of many years and retirement gains are on the constant downfall.

However, as it is said that something is better than nothing, so even the little sum of pension amount can be useful for the retired mass. State entitled social security can be another beneficial source of income for them. And, if you have some sort of retirement savings, life can be easy to you.

Confusion regarding the retirement savings and government plans are doing no good

image courtesy: http://goo.gl/p8m2X

image courtesy: http://goo.gl/p8m2X

But, here, ‘one size fits all’ approach can be suicidal and in many cases, retired people get confused, as     what should be the standard amount of savings to maintain the set benchmark.

Government in UK tend to modify the age limits to receive pension benefits. Recently, they have come up with bizarre approach in deciding who all will be receiving the pension benefits over certain period. Certainly, these policies are not doing any good to the retired persons.

Living a well-to-do life is becoming tougher by each day, if you have not signed in to the retirement plans in hey days, in all the possibility, you are deemed to receive the benefits provided by some of the means and time tested benefits.
Sign in to equity release for a better-off lifestyle in retirement years

image courtesy: http://goo.gl/1DdFT

image courtesy: http://goo.gl/1DdFT

Why not sign in to equity release plans, as these are solely designed to meet the requirements of senior citizens. Over the years, equity release plans have been benefitting senior citizens to come out from the financial intricacies.

Of late, some strict rules and regulations have been enforced by the equity release council to protect the interests of senior citizens. Interest rates on various schemes are lowered and flexible products have been launched to safeguard the benefits of needy persons.

Equity release offer much needed support at old age, when everyone has turned their faces against you, this plan could enthuse the spirit into you to live a highly esteemed lifestyle.

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Five Retirement Phases and How to Make Them Fruitful

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image courtesy: http://goo.gl/zRWI1

Over the last decades, a significant change in work culture has been noticed and same can be said true for the retirement. In the present times, people tend to change their workplace constantly and do not stick to the same employer for the lifetime. It has affected the benefits to be gained in the retirement age.

Today, you are expected to live the retirement age on own money, the money you saved during the working phase of your life suffice your retirement needs.

In the present scenarios, it’s of utmost importance that you carry out the retirement plan with keeping your priority in the mind. Take a look at the below mentioned phases and what aspects you should put more weight on.

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image courtesy: http://goo.gl/wr7g7

Accumulation

This phase begins as early as you enter the workforce and start setting aside money for later years of life. The end of this phase comes when you retire to live a family-man life. During this phase, you need to check on whether your employer offers different retirement plans and have you signed up for that? If you are self employed, you need to short-change on social security to avail tax deduction benefits.

Pre-Retirement

The pre-retirement phase begins when you are in the final years of accumulation phase. If you are 50 years older or 15 years away from the retirement, now is the time to start getting retirement plans in place. Do not take a chance in lining up your finances for the retirement age. You must seek advices from the experts to convert you employer retirement savings into IRA or other source of income. Get abreast with social security and basics of Medicare.

Early-Retirement

image courtesy: http://goo.gl/zD4dA

image courtesy: http://goo.gl/zD4dA

Early-retirement phase starts from the day you retire and ends when you reach 70 years mark. As soon as you enter this phase, create a proper communication channel with your family and share the entire information. All the decisions should be made in calm and supportive manner. In this phase, you also need to assess your financial status and how it is working. Consider using tax-deferred accounts to meet your requirements. At this age, if you find yourself in financial catastrophe, retirement equity release schemes can be a fruitful choice to make.

Mid-Retirement

At the age of 70, life is all about giving up and transferring controls to someone, who can take care of you. Though you might be healthy and raring to go but at the same time, you would like to communicate the measures your family should take, if your health conditions deteriorate.

Late-Retirement

There comes a time, when your health takes a turn for the worse. You require supports to live your day to day life. You hope that all the previous planning bear its fruits in the retirement age and manage the transition of your life.

 

Turn Your Home into the Key to a Happy Retirement

image courtesy: http://goo.gl/HXM2L

image courtesy: http://goo.gl/HXM2L

Equity release has long been around and though it had a shaky start, the schemes are gaining popularity among the retirees now. The contribution of the Equity Release Council cannot be denied in this matter since they were the ones to regulate the plans and the schemes and to make them safer.

Retirement is a time that we want to spend in some material comfort considering our failing health and other conditions. So, even if the official retirement age has been abolished, it has not been possible to do away with the retirement planning. Like always it is still believed that the earlier you start planning the bigger will be your pension pot and the more secure will be retirement life.

What about those who just woke up?

image courtesy: http://goo.gl/dzwmS

image courtesy: http://goo.gl/dzwmS

Believe it or not, there are people who would wake up one fine morning realizing that they are going to retire very soon. So, they do not get the time to plan their retirement. But that does not mean that they have to spend their retirement in poverty. It is then that equity release comes in most handy. You can get the cash up front and therefore, you do not have to wait for the money. Turn your home into the pension pot that will make your retirement life easy financially.

Some more reasons to release equity on your home:

image courtesy: http://goo.gl/xcJHo

image courtesy: http://goo.gl/xcJHo

This is one plan that will not restrict you because you are too old. In fact, the older you are, the higher are the chance of getting good returns. If this is not reason enough for you, then look at the other benefits of releasing money on your home:

  • The right to live in your own house
  • Tax free money that can be used for any purpose
  • No negative equity and you can even leave a legacy in certain cases
  • Low interest rates

 

By releasing equity on your home you will not only be able to manage your daily finances but will also have enough to fulfil some of your wishes like buying another car or going for a tour.

You have maintained your independence throughout your working life and there is no reason to do otherwise now that you are retired. Even if you have not planned for your retirement yet, you can do it now with equity release. Talk to a financial advisor today and find out how much can be released on your home. Even if you have left the rat race, there is no reason why you have to make do with less cheese.

 

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