subject: Equity Release Could Prevent Millions of Households Falling Short in Retirement [print this page] Equity Release Could Prevent Millions of Households Falling Short in Retirement
Chatham House, the world- leading institute for the debate and analysis of international issues, has recently published a report which reveals a bleak outlook for future pensioners.
The organisation looked at how people save for retirement and at predicted income in retirement up to 2050. And they found that households with incomes of 18,000-44,000, middle income households' as they called them, will experience an income drop of 60% when and if they stop working.
Chatham House believes that 60% of the population in the UK will be state-reliant for 50% of their retirement income.
But what if that state funding doesn't deliver?
This is exactly why it's predicted that increasing numbers of homeowners who wish to stop working and live a leisurely retirement will turn toequity release to fund their retirement.
If there is value locked into a property it makes sense to release it, otherwise where is the funding going to come from? Whilst many people think they will just carry on working', the reality is, when they get into their sixties or seventies, they will feel it is time for a rest; time to spend quality leisure time with the family or resting and relaxing having worked hard for so many years.
If you don't want to work into your retirement years, release equity
Cash built up in a property over the years can be unlocked courtesy of alifetime mortgage orhome reversion plan. The cash can be spent on absolutely anything desired, from a holiday of a lifetime to day to day living expenses, and can be released as a cash lump sum or in smaller amounts as needed, or both.
There is a variety ofequity release plans to choose from, including ones that cater for those with certain health issues.
If you are worried about relying on the state to fund your retirement, look intoequity release. It could make a substantial difference to you and your family; why work when you could be enjoying a leisurely retirement thanks to the money you've built up in your property?
Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration.
