Reaching our fifties is a time to celebrate. We should be enjoying life after working hard for so many years and one way we can achieve this is through financial freedom. It might be that you are already in a financially strong position but for so many of us, the rising cost of living will have had a noticeable effect.
However, there are ways to unlock that extra cash to ensure that you can start enjoying life again to its full potential. Equity release schemes, of which there are different derivatives, and annuities can supplement your income so that you can make the most of the things you love in life.
Think of them as a way of making the most of your hard work and savings!
An annuity lets you convert your pension savings into a regular income, giving you access to additional funds at various periods so you can start planning what you want to do.
It means you can start enjoying your money that you have worked so hard to save up.
Age Partnership are independent specialists who search the equity release and annuity markets to find the best solution for you.
Equity release schemes unlock some of the value in your home, releasing it so that you can supplement your income. These schemes may be an option for those whose pension provision is not sufficient to meet every day financial requirements. There different types of equity release schemes:
- Lifetime mortgages
- Drawdown lifetime mortgage
- Home reversion plan
Lifetime mortgages and drawdown lifetime mortgages are very similar products. They allow you to release a lump sum from the value of your home. The only difference derives from how you receive that lump sum.
With a lifetime mortgage you will get the money upfront whereas a drawdown lifetime mortgage allows you to release the money over time; as and when you need it. With both you continue to own 100% of your home.
A home reversion plan sees you sell a percentage of your property with any interest and charges factored into the sale.
As always you should always seek independent financial advice prior to making significant financial decisions – at any age!