Equity Release flexibility can bolster inadequate retirement income
In a week when the International Longevity Centre-UK has published a report revealing that 1.1million people approaching retirement will not be able to secure an adequate pension income if they were to purchase an annuity, unless they use non pension assets or receive additional benefits on top of the State Pension, the spotlight once again falls on Equity Release as a means of funding a comfortable retirement.
Richard Espley Head of Equity Release considers how the flexibility of Equity Release can help with retirement income.
“The International Longevity Centre-UK report makes for sobering reading. In addition to the 1.1million who couldn’t secure an adequate pension income with their ‘pension pot’ there’s a further 350,000 people who would also face a shortfall if they used their ‘pot’ to make a significant purchase. For those planning to put their pension pot into a savings account and use this to fund their retirement there’s a significant risk of running out of money before they die.
“After reading so many articles about the up-coming pension changes and the purchases that people are predicted to be considering – fast cars, luxury holidays and the like this report paints a different and perhaps more typical picture of the average pre-retiree. I think most people nearing this milestone in their lives are much more preoccupied with how to eke out their savings for retirement income.
“For many people the realisation that their hard earned savings aren’t going to give them the retirement they dreamed of is a bitter blow. A blow that comes at a time when there’s often a limited opportunity to add substantially to their retirement savings. That means that for some there are hard choices to make – delaying retirement or perhaps having a very different retirement to the one they anticipated.
“This is where Equity Release could really come into its own. Equity Release can be considered as part of an overall retirement funding strategy – some may choose to release equity from their home during their retirement so they don’t run out of money whilst others might release property equity to fund the retirement lifestyle they dreamed of.
“Equity Release should always be a carefully considered decision. As specialist Equity Release lawyers we ensure our process supports our clients’ decision-making and it includes the appropriate safeguards to ensure that clients are not proceeding under any undue influence. Our service includes a unique home visit legal service (8am to 8pm, 7 days a week at no extra charge) to all our equity release clients nationwide. Clients love the convenience of this service as they don’t have to make an appointment and trudge off to see a solicitor and can complete all the paperwork in the comfort and safety of their own home.
“So the flexibility Equity Release offers can help bolster retirement income and either make retirement possible or just make it more comfortable.”
To find out more about the legal service we can offer click here
Content correct at time of publication