The later years of life are often described as the most fulfilling. It is a time where you say cheerio to the daily grind and can finally find time to focus on what is really important.
However, just like any big step in life, preparation is the key.
Retirement life can be enjoyed in countless ways, many of which will benefit from planning from an early stage. Do you envisage yourself undertaking a globetrotting experience and seeing the wonders of the world? Maybe you’ve got your heart set on starting a grand project you always wanted to try?
Whatever the case, you will want as much financial legroom as possible.
Unlocking your lifetime earnings
Being able to do things on your own terms is simple. The only thing that’s stopping you is money and the solution to this could be stored in your ultimate asset – your home!
Equity release is essentially allowing access to money tied up in your home without having to sell up and move. The money you receive is tax-free and can be used in any way you desire, opening up your future to the opportunities you want to try.
This could be a great opportunity to start that business you always dreamt of, a time to start passing down wealth to your loved ones or simply a time to pay off your debts and secure your future.
It’s also a process which has proven exceptionally popular of late.
Almost 5,000 new customers released equity from their houses during the third quarter of this year (July-September) which was up 7% from Q2 this year and 4% from Q3 last year.
The value of these plans also rose in Q3 of this year, reaching £284.1 million to represent a 14% increase from Q3 in 2012 and a 15% increase from Q2 in 2013 – the largest rise recorded since 2004!
Finding the best fit
Everyone will arrive at this time of their life in a different situation but wouldn’t it be nice to have a plan that suits your individual needs? Luckily here in the UK we have a number of great retirement services that provide a host of plans with different features as well as help with the process itself.
One such company that provides equity release is McCarthy & Stone. They aim to help choose the right plan for you and are closely linked with award winning retirement specialists Age Partnership.
An advisor will walk you through what’s on offer and provide a full, written equity release recommendation. Your options include plans like a lifetime mortgage, interest-only mortgage and home reversion plan – each of which will leave you with varying degrees of house ownership and useable income.
Keeping a realistic mind-set when thinking about what you can afford and what you can afford is crucial in making sure your future is safe. Each plan will be thoroughly explained by an advisor with any charges and risks stated in a transparent and frank manner.
Covering all the bases
With retirement specialists, you are offered a range of other services that you may find worthwhile. If you’re planning on eventually making the move to a retirement home, you can look through a catalogue of differing options to look at. You can also get advice on benefit entitlement and may find that there is untapped money you could gain access to if eligible.