Adults Relying on Savings to Cover Income Shortfall
After it emerged that almost a third of adults are relying on their savings to make up for the lack of income in recession-dominated times, for many homeowners, aged over 55-years-old, an equity release scheme might give them the income they need without affecting savings.
A survey conducted by investment firm Schroders, estimates that almost £60 billion has been taken out of savings accounts. This equated to an average of £4,600 each. However, for some of these adults, especially ones in retirement, an equity release scheme might be better for giving them the supplement to income that they need.
“This is particularly an issue for those nearing or in retirement”
Robin Stoakley of Schroders felt that tapping into savings was particularly prominent amongst the retired and approaching retirement demographic. He said:
“The amount of capital being drawn down suggests that it is not just rainy-day funds that are being drained, but a significant proportion of individuals’ long-term savings.
”This is particularly an issue for those nearing or in retirement as they have less opportunity to rebuild their savings and declining annuity income proves insufficient to cover their day to day expenditure.”
An equity release scheme has the potential to unlock a tax-free lump sum from the value of a property. This can supplement income in retirement and be put towards anything, including everyday living costs to maintain a certain level of lifestyle.
Related posts:
