Over 50s Face Pay Cuts as a Result of Redundancy
06 July 2011
New research from Key highlights that 46% of over 50s made redundant in the last three years are yet to find a job. And of those who were successful in securing another job three out of four (77%) reported that they had to take a pay cut in order to get back into full time employment. 45% of those saw a considerable drop in their salary.
The effects of redundancy and lower incomes could see over 50s rely on borrowing to make up for the shortfall or to see them through periods of unemployment. This reliance upon other sources could see many over 50s carry mounting debts into their retirement years, putting a financial strain on their future.
Dean Mirfin, Group Director at Key Retirement Solutions, said: " People in their 50s should ideally be gearing up for the final push on securing their finances in retirement so being made redundant is a particularly tough blow.
"We have seen a growing trend in customers at younger ages applying for equity release in order to supplement incomes at a time when many can ill afford any drop in income let alone the dramatic effects of redundancy".
Key noticed a growing trend of 50-plus customers enquiring abut equity release after suffering redundancy, with the first quarter of 2011 seeing over 1 in 4 equity release plans taken out by people under 65, almost as many as the 65-69 groups. And as equity release is available to customers from 55 years of age it may prove to be a lifesaver for many.
An equity release plan allows people to release cash from their home, which can be used in any way they choose. Equity release is available to UK homeowners aged 55-95.
If you've been affected by redundancy and would like to find out more about equity release contact Key's UK based contact centre on 0800 531 6027 and book a free, no-obligation, initial appointment with one of our expert advisers. Lines are open Monday - Friday 9am-5.30pm.
Our local advisers can give you a detailed picture on how equity release works, including how all plans reduce the value of your estate and whether it will have an affect on your entitlement to state benefits. They will also highlight the exclusive offers we are able to offer our customers. Alternatively, why not try our free online calculator to find out how much you could release from your home?
"Redundancy is tough at any age but the younger you are the longer you have to bounce back. We'd urge anyone made redundant in their 50s to take a careful look at their finances and to get advice", says Dean Mirfin.
This is an equity release plan. To understand the features and risks ask for a personalised illustration.
Key's typical fee is 1.65% of the amount released, payable only on completion of a plan.