Advice for Retiree

Archive for the month “June, 2013”

Fund your retirement with an Equity Release

We may not believe that money is the most important thing in life but we also cannot fully negate the fact that it is one of the most important things for all of us. People say money cannot buy everything but if we try to give a closer look into the fact then is there anything available in today’s life which money cannot buy? Am not talking about the emotional aspects here obviously, but the fact is that if you do not have money, you are not in the eligible stratum of the society. This is something which is a matter of deep thought among those who are going to retire soon. For them, retirement means the stoppage of a regular income and therefore the cut short of their day to day expenses. However, with the invention of equity release, retirement is not a matter of worry anymore.

Fund Your Retirement with Equity Release

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An equity release can be termed as a power booster for you if you have already thought that you will be lacking a lot after your retirement. Anybody of or above the age of 55 years will qualify for an equity release. However, it will further depend upon your gender as well as the value of your property. Being a resident of the UK, you will be able to choose from various equity release schemes. There are a number of online equity release sites which help various applicants to lead a worry free life after their retirement with some of their best options.

Lifetime Mortgage is one of the most commonly used schemes by the various applicants. This is nothing but similar to a standard mortgage where the property of the applicant is kept in advance and thereby securing a loan amount of its value. The value is repaid after the death of the applicant by selling the plot/property. If the applicant has the partner, then the amount will be repaid after his/her death or when he/she will be gone somewhere else forever. The best part of the lifetime mortgage is that you do not need to repay any amount till the time you are living. This is the mortgage for life and the money you get will be absolutely tax free and thus you can use the money any way you want.

Drawdown Lifetime plan is another scheme which has evolved greatly in the last 7 years or so. Here, the loan amount is given on the basis of the age of the applicant as well as the value of his/her property. The best thing about this scheme is that you can borrow the amount which you need immediately and then throughout your life you can keep borrowing small amounts but the amount which you need to repay will be calculated from the day it is loaned to you.

Home Reversion Plan is a bit different from the other two plans. It requires the applicants to sell their properties and a lump sum amount is given to them in return. This way the applicants get to live in their own home absolutely rent-free for the rest of their lives.

These above mentioned equity release schemes are very popular among a lot of UK retired adults. However, before you think about applying for your own equity release option, you should be well aware of the terms and conditions of the same. It is very much advisable to go through the site and you can also have a chat with the equity release experts. This way the whole process will become a lot easier for you.

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EPPARG initiating a new discussion to address financial challenges of seniors

According to the EPPARG a lot of new initiatives are now on cards to improve pension schemes for the elderly. As per news a discussion pertaining to simplifying pension schemes, has already been initiated by the European Pensions and Property Asset Release Group. The discussion took place between members who majorly include industry representatives, institutional stakeholders, representatives from the academic and charity sectors. Their main aim is to explore the prospective result based financial solutions which majorly include home equity release.

Finacial Challenges

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According to reports the discussion chiefly centered round issues such as the changes that have been implemented by EU institutions in an attempt to come up with improved financing plans. Steve Kyle, EPPARG’s Secretary General has further opined that a lot of financing institutions are conducting studies on equity release schemes and how conventional pension mechanisms were proving to be futile in meeting new challenges. With the aged population experiencing a rapid surge and the sluggish economy taking toll on the employment market, most people are turning towards equity release schemes.

The study has been conducted to highlight concerns pertaining to what the aged population has been receiving and the constraints they have been facing so far. Apart from such highlighted issues, the study also focuses on a whopping €20bn that is yet to be released on home equity release schemes. The amount will be released for another 10 more years in an attempt to respond to the creasing consumer requirements. These schemes have been majorly introduced to address current financial constraints faced by the elderly population.

These days, financing institutions have come up with home equity release schemes that comprise two major schemes, the first being a lifetime mortgage plan and the second being home reversion scheme. It has been found that an increasing number of seniors are actually heading towards the home reversion schemes because of its flexible offerings.

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