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Cost of retirement causes over 55s to look at equity release

Concerns over inadequate retirement savings are causing one in eight people to consider equity release to help pay for their retirement.

Research from mortgage lender Birmingham Midshires shows that almost half of those over 55 are concerned about how they are going to pay for their retirement with only 10 per cent confident that they will be able to live comfortably in retirement.

The research shows 13 per cent of people over the age of 55 are considering using equity release to help pay for their retirement, with 22 per cent of people would considering downsizing and moving home to take advantage of the value locked up in their homes.

Many people would also consider cutting back on luxury spending, living on a tighter budget or even working past 65 in order to pay for their retirement.

Birmingham Midshires director of savings and investments Tim Hague says: “When people should be winding down to their retirement and enjoying their financial nest egg, the over 55s are more concerned than ever about whether they can afford to live on what they have saved.”


Professional level scrapped

The upper level of professional financial planner from the RDR proposals. The Institute of Financial Planning lobbied for the recognition of a higher level of qualification and experience but the FSA has only distinguished between sales, advised sales and independent advice.

Assess all areas

Last week, I took an initial look at employee benefit trusts and the latest version of these, the family benefit trust.

The Downsizing Delusion: Why relying exclusively on your home to fund your retirement may end in tears

By Steve Webb, director of policy The British obsession with homeownership can have dangerous consequences. A recent survey by Barings¹ found that up to three million people of working age were planning to rely wholly on the value of their home to fund their retirement. We are not talking about people investing in buy-to-let or […]


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