Advice for Retiree

Archive for the category “Retirement”

Equity Release to Offer Wishful Lifestyle to the Older People

image courtesy:

image courtesy:

Equity release advisers have to talk to lots of older clients facing financial adversity in later years of life. Most of the older people are left with many years of life and unwilling to relinquish the lifestyle they are used to.

Some of the people have taken annuities and gain retirement income from it. But, as the fixed annuity terms ends, they are again left on own. It causes a drastic fall in their retirement income.

Equity release advisers have to deal with many such cases. There could be another condition when the couple has used up entire retirement income and virtually left with nothing to depend for rest of their life. It forces them to severely curtail their lifestyle.

But they are not ready to accept any kind of changes in their lifestyle and way of living. Going on a cruise, shopping and other things have become part and parcel of their life and no matter what it can’t be detached from their lifestyle. Many senior citizens are even ready to pay up to £5,000 per year on cruise holidays.

It’s typical to notice that after supporting children financially throughout their life and having worked hard for entire life, a septuagenarian couple will take coming years as their time. They want to live these years at the fullest.

Most couples have certain medical conditions as well. The biggest worry for them is to find the resources to fund their lifestyle as well as medical bills.

Solution Lies with Equity Release

image courtesy:

image courtesy:

Under such precarious circumstances, they can be offered equity release solutions. Most couples own the houses having greater value in long term. It’s a surety that these houses have added lots of equity over the years. But some of them have interest only mortgages, about to attain maturity in recent future.

Equity release could provide all the solutions, whether it’s about lifestyle maintenance, footing medical bills or repaying existing mortgages.

Suppose a couple owns a house that worth £325,000 but they also have an interest-only loan of £30,324. They need to repay £125 per month and the loan is on the verge of maturity in couple of years.

If they take drawdown lifetime mortgage at 33 percent valuation rate, they can repay the mortgage and still left with £77,000 that can be withdrawn as and when they need the money.

If they opt for rolled up lifetime mortgage, additional expenditure of £125 can be saved and they will have a lesser deficit to add up to.

However, it’s natural and obvious for them to consider other alternatives, such as downsizing and renting the room, as well.

As a whole, equity release is not only about managing the income shortfall but also the comfort and luxury of life in your best years.



Living Life King Size in Retirement with Equity Release Scheme

Retirement comes with many promises. It is rightly said as golden phase in the life of a person. Out from the usually hectic routine life, people have lots of opportunities to live on own terms and conditions in retirement. They have all the time to spend with family and friends, attend clubs and go on lunch dates. While some prefer to spend time on the pool lounges reading latest novels, rest of the retirees look after gardens and harvest vegetables in the backyard of their houses.

Image Courtesy:

Image Courtesy:

Here are few ways to plan out a comfortable retirement:

Know yourself: Most retirees find it tough to come with the terms of newly acquired comfort. Either they find themselves in distress or spend lots of time alone. If you are a workaholic, securing a part time job or volunteering for social causes can be a right choice for you. You have a choice to become consultant to the company you are working in. This will not only provide you extra income but also make your life stress-free.

Engage yourself: After a certain point, retirement life becomes mundane and boring to most retirees. As they are now cut off from their colleagues and friends at working place, life may not remain exciting and entertaining to them. You need to re-schedule your daily life at the earliest to live life afresh. Plan out dates with friends and go out on adventures from time to time.

Enlist everything that appeals you: Clip articles, save brochures, collect photographs and everything that appeal you. This will give you some work, whenever you are free.

Reinvigorate your skills: Every human being is gifted with something unique; you can exploit your creativity in the retirement. A creative writer can start putting their words together and write a book or fictions. If you possess leadership skills, apply this facet of yours in invoking positive thoughts in the mind of youths in your locality, or you can join any organisation.

Keep learning: Learning is a process that never ends. You should always try to acquire new knowledge and information on the things that interest you. Go through non-fiction books, read newspapers and magazines as much as you can.

Rehearse the retirement: It may work for you in the long run as well short run. You should practice the retirement, well before hanging your boots.

Image Courtesy:

Image Courtesy:

Living life king size in retirement is possible only with constant flow of income. For your dream retirement, you need to make certain sacrifices in the working years and if you have not, do not feel low.

You have an option for retirement planning with equity release scheme. Yes, this plan is exclusively designed for retirees and offers several benefits to them. You can fulfil all the above mentioned dreams of yours by withdrawing equity from your house.

How to Plan a Rich Early-retirement?

Different people take retirement differently and plan their retirement on different stage of life. Planning a retirement needs proper attention and if someone plans out an early retirement, they must not mind putting some extra effort. One might wish to retire at 45 whereas most people mull on this issue after 55 or 60 years of age.

Under today’s economic growth, higher salaries and various investment choices have resulted into too many early retirements. It’s entirely your choice to retire at 40 or 60 years of age but retirement at both the stages are different to each other and have their pros and cons.

Image Courtesy:

Image Courtesy:

At the age of 40, you might have several commitments to fulfil and moreover, you have lesser time for accumulating retirement savings. On the other hand, it will give you a chosen lifestyle.

Retirement at 60, in most cases, is obligatory under the policies laid out by most companies.

Here are few basics for early retirement and how you can make your retirement rich in financial terms.

Consider a retirement age: This is the first and foremost step in planning an early retirement, as you will get a fair idea on savings pattern.

Life expectancy: Estimate how many years you are going to live post retirement, though it may sound difficult but by doing so, you can have an idea on the size of corpus.

What retirement meant for you: Two different persons will want to enjoy their retirement in different ways. If one plans early retirement to pursue other dreams, other may choose it for the world tour. As living two entirely different dreams varies on expenditure, you will need to mull on retirement plans that are poles apart to each other.

Now you will have a complete idea on how much savings you are going to need in your retirement. Here are a few steps that will help you in retirement savings.

Start early: If you are planning an early retirement, no way you can afford to start savings latter. Make sure to start your action as soon as income starts flowing in. Ensure that your contributions are without any gap, as this may prove burdensome to re-start after a gap.

Start small: There is no need to invest once in a big chunk, you must start savings early, even if it means small contributions. Your small contributions will one day return into big pension pot.

Increase the size of investment: Starting small does not mean you should get stick with it forever. Your savings must be proportionate with the income; it means that when your income is up, contribution, too, should be higher. Make a goal and work accordingly.

Wise investments: While making investments, you must look to balance the risk and return factors. In the early years of working life, invest in equity and later modify it for balancing debt instruments.

Buy a house: A house gives stability to your life. Make sure to buy a house, does not matter whether it is small or big. It will also help you in the later years to withdraw equity in the form of equity release scheme from the house.

Image Courtesy:

Image Courtesy:

An early retirement can offer a chosen lifestyle and help in pursuing your dreams, but to have a successful early retirement, you must chalk out plans and stick to it for the entire working life.

Amid Pension Rules’ Acceleration, Equity Release Remains a Driving Force

image courtesy:

image courtesy:

According to a study published by European Insurance and Occupational Pensions Authority (EIOPA), the new Pan-Europe pension deficits calculation rules can bring £150 billion funds in UK. This fund will be used to meet targets of defined benefit pension schemes in the country.

In yet another announcement, Chancellor George Osborne has emphasised on the government’s commitment to speed up new and simple pension overtures. According to Osborne, critic-centred cap on social care cost is also set to introduce almost at the same time.

Single-tier pension plan and cap on social care cost is set to launch a year earlier

The UK government has decided to bring single-tier pension scheme a year earlier than the due date was announced previously. Talking benefits of this plan, Osborne has declared that single-tier pension plan will come into effect from 2016, it was set to launch, before, in 2017.

Cap on social care cost is also to be introduced at the same, though the cap has been reduced from £75,000 to £72,000.

Osborne was forthright in saying that one requires paying up £72,000 only once and state will bear the care cost of senior citizens for rest of life.

To level pension disparity, single-tier pension plan is set to introduce at £144 per week. The Chancellor was up-front with praises for this “generous” pension scheme and claimed it as a massive boost for retirees keen on retirement savings.

However, it’s to be seen how new pension plan and social care cap fares in future. For most retirees, accumulating huge sum of social care cost will be a challenge. But, certainly, it’s not end of the road for them, as equity release can help retirees recover from challenges and to pay up the care cost.

House of Lords committee suggests equity release as effective retirement solution

A House of Lords committee had a few weeks earlier, recommended equity release as an effective solution to sort out poverty issue from the life of pensioners. This committee has also suggested government to chalk out strategies and spread awareness, about equity release, amongst the citizens of UK. (News source:

With several virtues, equity release scheme offers UK citizens to withdraw equity from their houses in cash lump sum or as monthly income. Unlike other mortgage plans, equity release customers can retain the ownership right and live in the house for entire life span.

Equity release offers countless benefits to customers, one of the most interesting and beneficial facets of this scheme is that paying back equity release mortgage, prior to your death or decision to move out from house, does not amount to any penalties.

It’s because of such time and means tested benefits that equity release has constantly been up on the minds of retired citizens in UK. Equity release market is functioning with all the new hopes, acquired from the last year’s huge success, to parity the income gains in the life of retired UK citizens.

If You Have Missed the Bus, Trust Equity Release For an Exorbitant Lifestyle

image courtesy:

image courtesy:

It is believed that retirement is full of fun and frolic but oftentimes this notion gets marred in the absence of enough amounts of cash. According to some recent studies, retirement savings are constantly on the decrease, more than half of the population do not have enough savings in the account to live a sumptuous and healthy retirement lifestyle. The same study reveals that major portion of retirement savings are likely to get finished into the early phase of retirement.

Now, you are in 40s and do not have abundance of money in your retirement account. There are not many working years left either, so that you can start savings with a fresh mind and new approach. Most probably, the small corpus of savings would be haunting you but you need to be calm and composed as they say, it’s never too late to mend the ways.

So, what are the options available with you?  

image courtesy:

image courtesy:

Become abreast with all avenues of savings and come up with aggressive investment

Still there are many ways open to you, explore them. First of all, categorise your income and expenses and find out if you can reduce the expenses. Once it has been categorised, start investing aggressively and ensure that your investment is productive.

Trust on equity

At this stage, your properties can give much-needed respite to you. Equity release scheme has been topping the list of beneficial retirement plans. The money received after release of equity on home is tax-free and you have the freedom to invest the way you like to. In the recent times, interest rates have been lowered on most of the equity release schemes, so you can look for a cheap deal.

Minimise your consumption needs

It’s wise to think austerity, when you do not enjoy the freedom of cash. If you are planning to buy expensive items such as car or new homes, shun the idea and prefer to buy only essential goods.

Cover your life with health insurance

At this stage of your life, you need to cover yourself with health insurances. Get to know about government sponsored benefits and make full use of it.

Focus on creating savings

When you are in 40s, retirement plans may not benefit you much more. Pay heed on accumulation of wealth and create savings whenever and wherever you get a chance to.

If you are still young enough to contribute into retirement funds, must check in with your employer to know of various retirement schemes that they offer you.

Equity Release Scheme to Support You through Thick and Thins

image courtesy:

image courtesy:

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:

image courtesy:

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:

image courtesy:

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.

Post Navigation