Equity Release Could Help 55-64 Year Olds Suffering High Inflation
This month the rate of inflation fell from 3.5% to 3.0% however, for the age group immediately approaching retirement, they saw inflation rise 50% higher than the official rate. With future financial planning currently a much talked about subject, turning to an equity release scheme in retirement could help many homeowners supplement their income.
According to the Alliance Trust Research Centre (ATRC) this is the fifth consecutive month that this age group has suffered from inflation.
“Price increases over the last year have still been relatively high”
One of the key contributing factors to this higher rate of inflation for the 55-64 year olds is attributed to transport and the 22% hike in fuel costs. Shona Dobbie, Head of the Alliance Trust Research Centre, said,
“As expected, inflationary trends have eased this month, following the sharp uplift in January. But price increases over the last year have still been relatively high in the case of many goods and services, reflecting the increase in VAT, high fuel costs and the fact that the recent depreciation of sterling has pushed up the cost of imported goods.
Equity Release Can Help Retirees Enjoy Their Lifestyle
On a more positive note, many homeowners over 75 years old and possibly enjoying the benefits of an equity release scheme will profit from a decrease in inflation – down from 3.7% to the national rate of 3.0%. This has made inflation in this age group the lowest for the fifth consecutive month.
For many budgeting in retirement is vital to be able to enjoy a stress-free lifestyle. This is why equity release schemes, which can unlock a tax-free lump sum in the value of your property, are one consideration that’s available to homeowners over the age of 55.
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