elderly
Two thirds (66%) of people aged 60+ own their home outright and, of these, just over a third (34%) rely on a state pension as their main source of income
Age UK Enterprises launches a new equity release advice service in association with Just Retirement Solutions (JRS) that allows regular drawdowns as low as £500.
Latest research from Age UK Enterprises, the commercial services arm of charity Age UK, reveals that 66 percent of those aged 60 and over own their homes outright yet of these just over a third (34%) of all those aged 60+ have only the state pension as their main source of income.
For some of those who are asset rich and cash poor, an equity release plan could provide an additional income which could help make their retirement more comfortable – yet over 90 percent (91%) of homeowners aged 60+ say that they would not consider the option.
In the last year, over one in 20 (7%) of 60+ respondents had tried or considered ways of generating additional money to live on with around a third (37%) of these having gained work – with, specifically, around 1 in 8 (13%) taking on freelance work such as gardening or being a handyman.
Whilst not suitable for all, equity release could provide a useful source of income for some. Research found that of those homeowners in later life (60+) who would not consider releasing income from their home, 27 percent want to leave their property to a relative. A further 25 percent don’t think equity release is appropriate for them while 17 percent did not trust Equity Release products.
Gordon Morris, Managing Director of Age UK Enterprises said: “Many people reach retirement and realise that the state pension will not provide the comfortable lifestyle that they had hoped for. During their working lives, they will have worked hard to pay off a mortgage and it may be that when they retire, their home can be used to supplement a meagre pension.
Gordon added: “We have specifically developed the Age UK Equity Release Advice Service based on our in-depth understanding of the needs of those in later life. We know that just over a quarter of these home owners, who would not consider releasing income from their home, are not opting for equity release because they wish to leave their home to their family, We designed the Age UK Equity Release Advice Service to ensure customers are able to pass on some of the value of their home to family if they wish. The service can also allow people to release sums as low as £500 and includes advice to ensure that people only consider purchasing equity release if it is appropriate for them.”
The Age UK Equity Release Advice Service, provided by JRS, is a regulated no-obligation service. It has been designed so that large draw downs are not obligatory and customers can take out sums as small as £500 through the flexible cash plan. As part of the service, a state benefits assessment is provided to make sure that a customer is receiving all the benefits they are entitled to before considering equity release. The interest rate on the plan exclusively available to Age UK customers is currently 6.59%. Furthermore there is a guarantee that the customer can remain in their home for as long as they choose and move to another property providing the new property can act as acceptable security for a loan. All providers recommended by JRS have a no negative equity guarantee, so a customer will never owe more than their home is worth.
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