A survey has shown that just 36 per cent of workers believe they are on course for a comfortable retirement, with most falling short of the average £21,120 goal*.
The retirement survey results have revealed that…
- Workers in Plymouth, Newcastle and Manchester are most confident they will have enough to enjoy a comfortable retirement
- People in Belfast, Cardiff and Nottingham are least confident
- Average income required in order to enjoy a decent retirement is said to be £21,120
Prudential have surveyed 2,200 working people about their retirement expectations, with more than half of those surveyed being 55 or over.
It seems that the majority of workers believe that their pensions and savings will fall short of what they think is needed to fully enjoy retirement.
Unsurprisingly given the higher cost of living, Londoners require the highest average income. Workers here believe they need £26,400 a year to be comfortable in retirement.
Those living in Belfast, however, estimate they will need £17,900 – the smallest average income from the survey.
Despite people in Plymouth, Newcastle and Manchester being the most optimistic about their later life finances, just less than half think they will have enough saved away for a comfortable retirement.
Property key to comfort in retirement?
Homeowners concerned about a shortfall in income during their retirement years could improve their situation by tapping into their property wealth.
According to the Nationwide House Price Index, the average home is worth £205,937 today – a staggering £150,768 more than 20 years ago.
Retirees who purchased their home even 10 years ago are likely to have benefited from an average £33,872 rise in their home’s value.
This increase in equity can be unlocked by moving to a smaller home or a cheaper area, or through equity release.
Flexibility of equity release
Equity release enables homeowners aged 55+ to unlock a tax-free cash lump sum from your home’s value without having to make any monthly repayments.
Today’s flexible plans are far more flexible than they used to be. Today you can make voluntary payments to reduce or prevent interest from accruing on your plan.
If you wish to, you can even pay your plan off in as little as 10 years in some cases. This could be useful for homeowners with interest-only mortgages coming to an end who need to repay their loan.
Speak to a specialist
Remember, equity release will reduce the value of your estate and the amount of the inheritance you leave, so it is vital to speak to an independent specialist in retirement lending before making a decision.
If you are considering equity release, speak to a member of the Bower team today to arrange your FREE, no-obligation initial home consultation. Call free phone [tel].
Not ready to talk to a specialist just yet? Request your FREE equity release brochure here.
*ThisIsMoney.co.uk 3rd March 2017