Longer lives challenge financial freedom

Posted in General

8th April 2010

Equity release could be the solution for people who are worried that living a longer life could exhaust their savings.

There are also fears that a greater number of people living past 90 will create what experts call a 'toxic tail'. This is a concern for pension providers and insurers, which have to pay out for longer – possibly over 20 years after retirement.

There are currently 450,000 people aged over 100 on the planet – in 20 years time, this is expected to top one million.

People living longer in the future could ultimately affect the willingness of pension companies and insurers to provide cover, which could force more people to look for other sources of retirement income.

To avoid having to work longer or lose financial freedom in older age, releasing home equity can add a regular additional income, leading to a more comfortable retirement.

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