Later life comes with all sorts of unique challenges and none more so than managing your finances. In fact, according to a recent study, only 28% of people planning to retire this year, felt they have saved enough for a comfortable retirement*.
Of course, one person’s idea of a comfortable retirement can be very different to someone else’s. While some may dream of days relaxing in their perfectly manicured garden replete with hot tub and luxury furniture others may find comfort in ensuring they can get by and their family are financially secure.
To add a spoke in the wheel when it comes to finances in later life, many are now retiring with debts, such as outstanding mortgages or existing credit cards still to pay. While savings and pension income can be enough to meet the monthly household bills, debt repayment can eat into monthly income significantly.
So some are, understandably, looking towards their assets to help cement financial security in retirement. Arguably, for most, the biggest asset is their home.
By releasing tax-free cash from your property with a lifetime mortgage – the most popular form of equity release plan
– you could create that comfortable retirement you want, whilst staying in the home you love. It also means you don’t have the worry of regular repayments, as typically there are no monthly payments as the loan plus roll up interest is repaid when the plan comes to an end.
Equity release can be used on a range of needs and wants and often people won’t only use it for one thing. For instance some of our customers have used the tax-free cash in the past to pay off existing debt before making home improvements or upgrading their cars or helping family with their financial circumstances.
Not everyone has the same idea of that ideal retirement for them and not everyone has the same financial circumstances either. So the first step when planning your own retirement finances is to ensure the advice and information is suited to your own situation.
At Key, we offer equity release advice that is unique to you and your circumstances and is delivered by qualified equity release experts. We’ll ensure you consider other funding options such as downsizing or alternative forms of borrowing. And, if equity release isn’t right for you, we’ll tell you.
We’re now offering all our expert advice and support over the phone.
Things to consider:
Key Equity Release offer lifetime mortgages only, which is a loan secured against your home. You should always think carefully before securing a loan against your home.
Available to homeowners over 55, with a lifetime mortgage, you remain the owner of your home.
Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits.
All of our equity release advice relates to our range of Key-branded products and is completely free-of charge, so you can find out if it’s right for you without it costing you a penny.
* Research conducted by Research Plus between 18 and 31 December 2019 among a sample of 1,000 people expecting to retire during 2020