Advice for Retiree

Archive for the category “Equity Release Schemes”

Equity Release to Fund Care and Other Day-To-Day Needs in Retirement

Inflation in UK has forced many pensioner households to cut down on other expenses. Due to rising cost of food, fuel and travel, over 55s find it tough to live debt-free. The leading financial institutions are worried about the future of the senior citizens.

According to a recent study by a leading insurer, the older population last year reduced their expenses on repaying debts. It has been revealed that they did so to keep up with the rising cost of essential commodities.

In terms of income, there has been increase of 13 percent in the retirement income over past three years. Senior citizens these days earn £1,412 against £1,250 they used to get before 3 years. But, in the meanwhile, if you take a look at unsecured debts, a whopping increase of 36 percent has been recorded.

Simultaneously, fuel and service costs that have sky-rocketed due to manifold increase in inflation rate escalating the worries of senior citizens. Because of all these factors, the cost of household essentials has sharply gone up.

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In the present times, the future of senior citizens is looking bleak. With the pension income proving inefficient to keep up with the rising inflation rate, they are forced to mull over alternatives.

Equity release can be an answer to rising costs

Equity release proves as a saviour under such circumstances. The government has also recommended equity release for senior care and lifestyle improvement in retirement. However, senior citizens need to be made aware of the virtues of equity release and the differences it can bring in their retirement.

Misconceptions about equity release

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There are still some senior citizens who have similar types of misconceptions about this scheme. The financial advisers report this; clients raise a few questions while discussing equity release matter with them.

Equity release market persists with the hard work to educate and update the common people and particularly those are nearing retirement or already in retirement about the different equity release products. It is suggested to them that under what circumstances equity release can be taken and how it will positively impact their post-retirement lifestyle.

Most people are apprehensive about the inheritance. They suppose equity release will negate even slight chances of leaving inheritance for their children while some are under the misconception that they might lose their house by taking out any equity release product.

Somewhere around 25 percent of financial advisers have to say that most consumers are unaware that equity release guarantees no negative equity on house. Oftentimes, financial advisers have to clarify such doubts from the prospective customers.


In a nutshell, it is the need of house to guide prospective equity release customers and let them know the facts of equity release scheme.


Overcome Financial Worries Post Retirement with Equity Release

The abundance of the equity release products is regarded to be the most effective solution provider. If you wish to go for it you will need to go through certain criteria.

Your Home: Your Saviour

Your home can save you. Yes, it is true. If you do not have a great pension in your post retirement years then it will be difficult to make your ends meet. If you are a homeowner and an individual over the age of 55 years then you are eligible for equity release. Equity release plans are said to make every senior citizen financially happy. The equity release plans are especially designed for individuals above the age of 55 years. Equity release is the most reliable and one of the safest options that one can get in his post retired life to make financial conditions a lot better.

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Equity Release Plans For 55 +

Throughout the United Kingdom home owners above the age of 55 are going for the viability of using equity release plans to raise the much needed cash. Equity release plans are extremely versatile. This is because the money that is being freed can be spent on just about anything. Two of the most popular equity release plans are home reversion plans and lifetime mortgages. To be eligible for these and the rest of the plans you need to be over 55 years of age as well. These are one of the most innovative ways to free up cash. It is also easy to find out whether you can qualify for an equity release plan through an equity release calculator. You need not have to leave the premises of your house in your lifetime if you apply for the equity release plans.

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Modes of Payment

The payments that are received from the equity release plans can be primarily obtained in two modes. These two modes are lump sum amount or equal monthly instalment modes. Financial advisors however advise that you go for the latter. Going for the equity release schemes are one of the major decisions that one has to take about his post retirement life. It therefore is always advised to talk to your equity release guide before you make the plans.

Therefore, if you are more than 55 years and own a home in good condition by your name in UK then you can go for equity release. It is highly advantageous for individuals to go for the equity release plans to say goodbye to financial worries post retirement.

Five Retirement Phases and How to Make Them Fruitful

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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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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.


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.


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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.


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.


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.


Equity Release Is a Pivotal Financial Contributor in Your Post Retirement Life


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The properties’ value in UK is on a rapid rise. A large number of Brits have significant value tied up in their properties. On the other hand, insufficient pension pot is inadequate to meet the basic standards of post retirement life. For them, who bank upon pension pot to live a comfortable life, it’s proving a nightmare.

It’s no surprise to see such a huge response to equity release scheme, the dastardly economic effects are compelling homeowners to draw out money from their properties. Into the last year, 2012, equity release market plunged forward, accomplishing new heights in the industry.

The governing body in equity release market, SHIP, is on the cloud nine by seeing a huge response from older homeowners. The growing needs amongst retirees and awareness about various plans under equity release are the causes behind such a huge uproar for this scheme.

Poor savings and insufficient investment returns have drenched retirees’ standard of living, economic slowdown is adding to their woes. With high inflation rates on all the essential commodities, living a substantial post retirement life is becoming impossible for many retired persons in UK.

Equity release can provide them all what they have ever dreamt of. With lowered interest rate and various flexible plans, equity release market has come of age and being driven by faith from customers.

However, like every coin has two sides, equity release, too, is having some positives and negatives. But, its virtues have the abilities to overlap negatives, which are only a few. In spite of some negative consequences, equity release scheme is far better than several interest only loans. One must not be in dubious mind, release equity on house and fund your retirement to start financially secured life afresh.

Let’s talk of some pros and cons, start with virtues of equity release scheme:

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pros cons


  • Tax free lump sum or monthly income
  • Usually, there is no requirement of monthly repayments
  • Spend the money as per your wishes
  • Full ownership of house for lifetime
  • No negative equity is guaranteed
  • Debts are not passed on to your family
  • Possibility to leave inheritance for dependants


  • Estate value might get reduced
  • Entitlement to state funded benefits might be affected
  • If you opt for a wrong plan, interest rates might be higher

Do not get driven by some of the negative aspects of equity release. Well, suppose, your estate value gets reduced but that is not sufficient to curtail you from living a comfortable life. If you have no heir or you do not intend to leave an inheritance, what your house is worth for after your death?

With the released money, you can fund your basic needs, as the money received is so high. It’s important to seek experts’ advice  as they can provide you exact information on various equity release schemes and which one is best suited to you.

Access Money That’s Trapped For Long

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Goodness!! So, you seem to have won huge amount of tax free cash. It sounds great when you hear the word tax-free cash, especially when your income is restricted and you are too old to find a job for a living. Well!! But to get this cash you have to release your property‘s worth. Believe it or not today, thousands or may be millions of home owners are releasing cash on their property to sustain a living.

Finding money that works for youmoney-house
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Financial freedom is one of the main reasons why seniors are opting for these easy mortgage schemes; but even if you are inspired hearing all of this, there is need for you to look at some key facts as those mentioned below. Remember this is a lifetime commitment and you need to decide with your cool brain working:
• Equity release schemes are designed in ways such that you will receive an initial sum that is hardly close to your estate value.
Yes, and if it is about leaving inheritance then, consider seeking better plans that aptly suit your

• It is assumed that equity release may affect your entitlement to receive Governmental benefits. It is better you seek help of an advisor.
• A viable option is to sell your property and use up the money. You can even think otherwise.
• The lifetime commitment will entail you to pay the loaned amount in full after your demise or after the demise of your spouse. If you want to repay the loaned amount earlier then, you will have to pay charges for the same.
• On the other hand if you are looking for other borrowing options you will have to consider the monthly repayment schemes which are absent when you opt for an equity release plan.
• A customised illustration will help you understand the risks involved.
• Make sure you carefully analyse the equity release schemes available to you. This will help you understand your responsibilities.

Your  Needs
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Apart from considering the few facts mentioned above, you should also be aware of the truth that equity release plans give you 100% freedom. However, it is always a wise idea to research on schemes available in the market. This will help you seek the best plan that deems to suit your needs. Get an equity release guide to know how the scheme works and whether it is appropriate for you.

Pay Less and Earn More in the Long Run from Equity Release

As per the existent market scenario, equity release schemes which have been helping millions of seniors achieve a desired flow of income from the cash value of their property, are now offering lesser rates, which means the elderly population can actually save a huge amount on whatever they pay. Nowadays anyone who has already opted for a scheme at surging rate can make a switch. Yes, retired home owners can now look for enticing deals on equity release and economically strengthen their future.

Reports of interest rates of equity release schemes experiencing a fall have become widespread. Stonehaven, a popular equity release provider has already curtailed the rates from 6.08 to around 5.98. It has also been seen that interest rates have fallen by a percent since last year. Though initially the change may seem trivial to our naked eyes, still it will help reap massive in the long run. Earning lump sum in the long run can really make a difference.

Equity release schemes are the most sought-after financial plans reigning over the retired community. The schemes are specially meant to access the tied up value of one’s property. One of the most popular schemes that have managed to reign over the market is the lifetime mortgage scheme. Under the lifetime mortgage scheme, the rate of interest remains fixed and the home owner earns a regular income till the time he dies or is shifted to long term care.

The interest is basically calculated as a rolled up sum; however borrowers can also opt for deals that allow a consumer to pay interests on a regular basis. The loaned amount is repaid from the sales proceed after the property is sold. However, recently experts have been suggesting the borrowers to make a move and opt for other lenders in the market. However, it is also important for them to ask financial experts about the dos and don’ts involved and to know if a switch may actually come to their rescue.

Additionally borrowers who are agreeing to such change should actually beware of any early repayment fees; such early repayment fees can actually deprive people from deriving any benefits. Nowadays home owners can avail these super beneficial financial schemes at 55 years or above. Furthermore an expert has recommended that unless a borrower has strong reasons to withdraw the cash at an earlier date, the person should wait till the time he/she steps into 60. To know more about retirement plan with equity release schemes one should rely on experts who have knowledge about the market.

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