Sixty-five per cent of pre-retirees aged 45 and over would like to retire within the next five years if they could, yet financial pressures are so great that 18 per cent of these predict that they will never be able to retire fully.
According to HSBC’s latest report, The Future of Retirement Healthy new beginnings, this figure is almost twice the proportion that said the same in 2015, when 10 per cent of pre-retirees expected never to be able to afford to fully retire.
The figures from HSBC also showed that:
- Of those aged 45+ who would like to stop working and are unable to do so, 81 per cent say this is because they would struggle financially
- 65 per cent of pre-retirees believe that poor health will make saving for their retirement more difficult
- Almost a quarter of working age people over 45 who would like to retire in the next five years say it is because their work is having a negative impact on their mental and/or physical health
- 31 per cent of retirees say their relationship with their partner improved when they retired
Charlie Nunn, Group Head of Wealth Management, said:
“People worldwide are recognising that retirement can be an opportunity for reinvention and new beginnings. Yet financial barriers are preventing many people from retiring when they would like to – or, in some cases, at all. Almost one in five people fear that they will never be able to retire fully, so the need for sound financial planning is stronger than ever.”
“People should consider these aspirations when planning for retirement and ensure they are making sufficient financial provisions for this new chapter in life.”
Homeowners aged 55+ who are seeking a solution to their financial issues whilst in or approaching retirement may wish to consider an equity release plan. By tapping in to some of their tax-free cash tied up in the value of their property, they could give their finances a much-needed boost and make their retirement plans a reality.
For those concerned about poor health affecting their financial situation, when it comes to equity release this could actually work for them. Enhanced plans enable those with poor health or certain lifestyle conditions to release a larger percentage of their home’s value; this could be especially helpful if additional care costs or medical bills are expected in retirement.
A number of conditions can qualify a person for a higher release with enhanced terms, including diabetes, cancer, high blood pressure – even a history of smoking could enable you to unlock more money.
Equity release is not right for everybody of course, so Bower recommend you speak to an independent specialist in retirement lending before making a decision. Your adviser will take the time to explain the advantages and disadvantages of each type of plan; including how equity release will reduce the value of your estate and may affect your entitlement to some state benefits.
If you are considering equity release then speak to a member of the Bower team today to arrange your FREE, no-obligation home consultation, where you can find out more about our bespoke service and if you might qualify for a plan.
Because of our consistently high feedback scores in customer service, we are thrilled and honoured to have been awarded the Feefo Gold Trusted Merchant Accreditation 2016. This award is especially important to us as it recognises our dedication to excellent customer care and top quality equity release advice.
So why wait any longer? See for yourself what makes our customer-focused service so special. Speak to our award-winning team now on free phone [tel].