subject: One in Three Over 50s cannot afford to Retire [print this page] One in Three Over 50s cannot afford to Retire
An independent report entitled 10 Years to Save Your Retirement' produced by MetLife Europe Limited (MetLife) has revealed that only 26% of people approaching retirement age think they are heading for retirement in good financial shape, while 64% do not believe they will have enough money to fund a comfortable retirement.
Worryingly, 32% of those interviewed have no savings at all to fall back on in retirement. These results show what many economic experts believe is an all too common problem: over 50s being caught up in a period where low pension incomes are being stretched even further due to harsh economic conditions.
On average, a pension that includes state benefits of around 18,000 per year is what many people aim for in retirement. Unfortunately only around 25% of retirees will hit their target.
One option worth considering for topping up retirement income isequity release. This involves taking out some of the value built up in a property and is a route many over the age of 55 are taking.
With property values having increased over the years, homeowners generally have a fair amount of equity, which can be used to improve life in retirement. A lifetime mortgage or home reversion plan allows cash to be released, tax free, and then spent on anything desired. Anequity release scheme can be a good way to boost income in retirement so that money worries become a thing of the past.
Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration.
