Over 60% of 50-plus Britons feel their lifestyle has ‘crashed’ says Saga. According to their report, older people in their millions are being crippled by extortionate living costs, higher than ever petrol prices and poor pay rises.
The survey of around 12,000 adults investigated lifestyle changes over the last 12 months. Dr Ros Altmann, director general of Saga, said their quality of life has ‘crashed again’. ‘Financial burdens for the over-50s have worsened with living costs soaring,’ she added.
Sixty one percent of older people admitted they had ‘cut back on nonessential spending’. Basically, they are facing a less comfortable lifestyle than they had a year ago. Cutting back on leisure activities, holidays, using the car: all small things individually that add up to make sweeping changes collectively.
Release Equity and Spend on Whatever you Wish
There is a way to improve the quality of life in retirement however for those who own their own homes. Over 55s can release equity from a property and use the cash to spend on whatever they wish. Some choose to draw the cash down in smaller sums which can help to leave any means tested allowances intact and can work to manage the interest payable. Others opt to pay off some or all of the interest on a monthly basis and for those who are intent on leaving an inheritance for their loved ones, there are plans that allow for a guaranteed sum to be left.
Cutting back on spending in retirement is not ideal and certainly not desirable. After all those years of working, taking time to enjoy the finer things like holidays and leisure and taking pleasure in treating the family should be top of the agenda.
Equity release could make this happen. Making the most of the property that has been invested in over the years is a popular option for many people in retirement. Specialist advice is vital to make sure it is the right course of action and other finance options are explored.
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 411 8668.