Advice for Retiree

Archive for the tag “Equity Release Schemes”

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.

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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Image Courtesy: bit.ly/xFbbrJ

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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image courtesy: goo.gl/wr7g7

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.

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

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

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?  

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image courtesy: http://goo.gl/KHr7d

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

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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

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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

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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.

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

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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.

 

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

house-money

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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

Pros

  • 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

Cons

  • 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.

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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