The gender pay gap is a hot topic at the moment. On average, women in the workplace earn 9% less than their male counterparts1
It’s an imbalance many have been trying to tackle. But what does it mean in later life?
As a woman, after typically earning less than men in your working life, you might think that a similar discrepancy awaits with your retirement income.
However, the discrepancy is in fact much greater.
Currently, women aged 65 have an average pension
pot of £35,000 in the UK1
. That means, given a typical 65-year-old woman will live for almost another 21 years2
, her average annual pension income will be under £1,700.
Men, meanwhile, have on average five times that amount tucked away1
The reason for this significant gap has been pegged on women’s roles in childcare and domestic work. After having children, nearly two thirds of women only return to work part-time, meaning they have less earnings to save from.
Additionally, only 8% of women considered contributions to their pension as their highest priority when starting their careers1
So, what can you do?
If you’re heading towards retirement or currently find yourself with a low retirement income, there could be a way for you to secure a more comfortable financial future.
Many see equity release
as a way to finance big moments in life; home improvements, a once-in-a-lifetime holiday, helping your family get on the property ladder.
And while you can use equity release for any of those things, it can also be used to supplement your retirement income. The tax-free cash you release from your property is yours to spend as you wish.
Using the drawdown feature with a lifetime mortgage
, the most popular form of equity release, the lender agrees an overall amount and allows you to take cash from your home whenever it suits you, following your initial withdrawal – subject to your lender’s criteria.
That means you can take advantage of it when you need it. And the compound interest is only charged on what you release.
It’s easy to find out how much tax-free cash you could release from your home by using our free and simple online calculator
Or, to find out more about equity release, download your free guide here
What should you consider before taking out equity release?
Our independent, specialist equity release advisers compare products from the whole of the market to find the most suitable equity release plan for you. They’ll discuss all the options available to you and explain that taking an equity release plan reduces the value of your estate and may affect any means-tested benefits you’re eligible for.
With a lifetime mortgage, you’ll still own your home. It’s a loan secured against your home and is repaid when you, or the last surviving applicant, pass away or move into long-term care.
Equity release plans we recommend have a no negative equity guarantee, which means you’ll never owe more than the value of your home.
You have to get expert advice before releasing equity; it’s a regulatory requirement. Key’s
initial consultation is free with no obligation to proceed. If you decide to go ahead with an equity release plan, our advice fee – usually 1.99% of the amount released, subject to a minimum of £1,499 – is payable only on completion.
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