A report from the Office of National Statistics (ONS) has worryingly revealed that most single pensioners living in the UK are forced to live on just £27 per day, which works out to under £10,000 per year. As a result, rather than enjoying retirement, many pensioners are forced to work or face constant financial pressures as they grow older.
Even more worrying is that the ONS believes there are millions of pensioners living on even less money, with 6% of the UK’s 3.9 million single pensioners living on just £5000 per year. The reality is that unless pensioners continue to work well into their old age, many will face constant financial hardship. Although the average pensioner couple over 75 years of age has a gross income of £602 a week, £188 comes from working, a clear sign that even couples are struggling to live off of their own and the basic state pension.
One option that could relieve the financial pressures is an equity release scheme. Geoff Charles of award winning Equity Release specialists Bower believes more pensioners could look into the possibility of releasing equity from the home.
He says ‘By seeking independent specialist equity release advice from a company that offers an in depth advice process it is possible to examine all the options and decide whether releasing cash from the property is the right course of action. If it is, the next stage is to examine the whole of the market and select a lifetime mortgage or home reversion plan to suit.’
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.