Research amongst the over fifties age group has revealed that over half (54%) would advise their children to invest in property to fund their retirement, as well as paying into a pension. 44% of over-50s in work still have a mortgage to pay, with a fifth believing a rise in interest rates would reduce their ability to save for retirement as they would have to keep up with ongoing mortgage repayments.
Despite many homeowners worrying that a significant amount of money has been wiped off their property’s value, this has not put many off investigating equity release schemes as a way of freeing up valuable cash as they approach retirement. In fact, the research from retirement specialists LV= shows that 9% will take advice on using their property’s equity before they retire.
Releasing Equity Can Make a Big Difference
Releasing equity from the home, if deemed to be the right course of action after taking advice from a qualified equity release specialist, could well make a big difference in retirement, making it a far more enjoyable period of life for those deserved homeowners who have worked hard throughout their lives. As well as living more comfortably day to day, enjoyable things like taking regular holidays, treating the family and making improvements to the home could all become possibilities whether it’s a home reversion plan or lifetime mortgage that is selected.
Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration.
Bower is an FCA regulated independent financial advice company that offers specialist advice on equity release throughout the UK. For more information email [email protected] or call 0800 4118668.