Many of those reaching pension age face the prospect of receiving lower than expected income from pension plans, and a state benefit system which is struggling to provide for those who need extra help to manage financially in retirement.
Others who retire may have something of an aspirational lifestyle, having been able to afford the nice things in life whilst they were working. This includes such things as foreign holidays, a new car every few years and other luxury goods. Often the pension lump sums on retirement will only last for a few years, or less, yet the natural desire to live comfortably remains.
We also have a great deal of money tied up in properties which are owned by retirees. Whilst it is nice to think that some of this can be left to family and beneficiaries when they die, for many people this asset could be used to provide a better retirement.
So how do you start to release equity from your home? The first thing is to decide the reason why you need it. For some people, who may have retired on a low pension, or who may be struggling to meet the rising costs of living, the need is likely to be supplementing income. There are plans available to provide ongoing monthly payments to help make life more comfortable.
However, for the larger lump sums needed to either improve the home, provide for more expensive purchases, or even gift to children or grandchildren for such things as house deposits there are lump sum release plans available. Some allow regular withdrawals of smaller amounts on an ad-hoc basis; this involves setting up a ‘drawdown reserve’ which can be accessed at any time in the future as the need arises. These schemes are are becoming more popular and we are regularly seeing product innovation from the scheme providers.
All of these plans allow you to release equity from your home without the need to make monthly repayments, or worry about your home being taken away from you. Many schemes also offer the guarantees provided under the Equity Release Council’s SHIP (Safe Home Income Plans) standards which ensures a safe, clear and understandable range of products from which recommendations can be made.
Having decided to explore the possibilities the next step is to meet with a competent and qualified adviser who specialises in the provision of equity release advice. Andy Wilson is a specialist in this area and is well qualified to advise you on the most appropriate form of scheme for your individual requirements. An initial chat can be arranged with no obligation to proceed further, and always at Andy’s expense, not yours.
Please use the ‘Contact Andy’ form below to ask for further information or to arrange a meeting.