When it comes to retirement, it is important that people have their finances in order so that they can lead the kind of lifestyle that they have worked so hard towards. This is not always easy, especially with the rising cost of living, which is why so many people use their property wealth to boost their retirement income.
Research Into Retirement Planning
Equity release experts Key Advice undertook research titled the “Retirement Class of 2020” looking at the finances and ambitions of over 1,000 UK workers that were expecting to retire in 2020. Interestingly, the research revealed that as many as 30% planned on using their property wealth as a way to boost their finances after they stop working. Those surveyed had a combined property value of over £142.5 billion, which works out at an average of around £388,900 each, which is a lot of money tied up in property.
The study also found that 46% were looking to downsize while 23% were considering equity release or remortgaging. Only 40% of those surveyed were happy with their expected retirement income, which is why so many are assessing their options and finding ways to boost their income.
When making a large financial decision like this, it is vital that people weigh up their options. Equity release can be an excellent solution for many property owners that are retiring as a way to free up money tied up in the home while you continue to live there, but it is also not a decision that should be made lightly.
Rates for equity release are at their cheapest in years and it can be a quick and easy way to significantly boost your retirement income. While it certainly has its perks, there are also drawbacks to be aware of particularly when it comes to inheritance. By taking out money in the house with a mortgage that is not paid off until you die, it means that there will be less for people to inherit so this needs to be factored into your decision.
Getting the Ball Rolling
Equity release can be the best way to boost retirement income for many and you can use an equity release calculator to work out how much equity you can release from your home. You will also find it helpful to arrange a meeting with an expert so that they can go through your options and help you to find the best way to boost your retirement income.
Many people worry about their finances in retirement, which is understandable as it is a major change in your life and you will want to be able to afford the lifestyle that you have planned. There are always options for ways to boost your retirement income with using the money tied up in your property being one of the best.