Equity Release Could Boost Misplaced Pensions
An equity release scheme could be the ideal financial plan to help supplement many people’s retirement funds after it emerged that over 37% of Brits who reviewed their pension plans didn’t know where their pension is invested.
This was one of the key findings according to research by Baring Asset Management. Their research suggested that 48% of people working in the UK have never reviewed their pension plans but of those that have, over one third didn’t know where it was.
A further 36% of those who have viewed their pension just chose the ‘default option’, allowing their pension provider to decide where to invest their funds.
Equity Release Could Combat Recession Delaying Retirement
With 64% of people now believing that the recession will delay their retirement – according to a study by Aon – making the most of your pension should be vital. Some homeowners may decide that an equity release scheme could be the way to unlock more funds to enjoy their retirement years, especially after the Pensions Policy Institute reported that 40% of UK household’s wealth is tied up in property with just 30% in pensions.
Barings’ Chief Investment Officer, Marino Valensise, commented, “Many people give very little thought to their pension despite the huge importance it has in deciding our quality of life in later years. A pension pot is often your second largest investment after a home, yet in many cases not a moment’s thought is given to where the money is invested.”
Property Equity Makes Up 40% of Household UK Wealth
Equity release schemes have the ability to unlock tax-free lump sums or regular payments to help homeowners spend the money they need. Traditionally, these are schemes reserved for retired homeowners but the average age of those taking out such a scheme is slowly dropping.
Dan Baines of equity release specialists, Age Partnership, commented: “With the ageing UK population, it seems inevitable that the home will begin to play a more and more important role in providing for the retirement years.”
“The Pensions Policy Institute recently reported that around 40% of UK household’s wealth is tied up in property, compared with 30% in pensions. These figures give a clear indication of the important role that equity release can play in funding retirement, both now and in the future.”
For no-obligation advice on whether equity release could help you and information on the best plans please call our 24 hour helpline and speak to one of our advisors:
Or use the comments box below to ask a question.
Equity Release may involve a Lifetime Mortgage or Home Reversion Plan. To understand the features and risks ask for a personalised illustration.
Age Partnership provides initial advice at no cost and without obligation. Only if you choose to proceed and your equity release case completes would a typical fee of 1.5% of the amount released or £795 be payable.
Important things to consider about equity release:
- Equity release could affect your current or future entitlement to means-tested benefits
- Releasing equity to spend in your lifetime can reduce the amount that is left in your estate when you pass away
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