Retirement Worries sorted by Property Resuce

Retirement is meant to be a time when people enjoy life, putting aside their work and spending time on the family, friends and hobbies that have often had to take a back seat while they pursued their career.

In the UK we are living longer and, in the main, fitter lives, thus increasing the numbers of years during which we will need to draw our pensions. The media is full of stories about inadequate pension funds, the closure of final salary schemes and the desperately unlucky few who find their pension fund provider has collapsed leaving them with next to nothing.

The reasons for inadequate retirement income are complex, and involve factors such as our higher expectations from life, our willingness to take on debt even when we reach our late 50s and 60s, and, as mentioned earlier, our propensity to live long, active and fulfilling lives. People in the two decades prior to retirement age owe, on average, four times as much as the same age group did 10 years ago, so it is not uncommon to find people in their 70s with part time or even full time jobs, sometimes out of choice but equally out of necessity.

As a nation we are very ready to borrow but far less keen to provide for our pensions. Government and financial institutions warn us of the dangers of not planning for the ‘golden years’, yet we remain committed to high spending life styles that leave only small change for the pension piggy bank. Part of the trouble is that demands are made upon us at every stage of our lives: the student loan, the first flat, the bigger mortgage, the university fees for children, and so it goes on. Because we live in a society where debt has become part of life, the majority are unlikely to heed the advice to start pensions early unless the government makes it mandatory.

But the sad fact is, that unless you are still in your 20s or early 30s, the time for building up a substantial pension fund has probably slipped by. If you are over 40 you will need to dedicate a significant percentage of your earnings to a pension in order to have a fund that will provide the level of income you expect when you retire. A financial adviser will be able to tell you what that level should be, taking account of your current circumstances and your likely future needs.

If you are already nearing retirement the horse has truly bolted! But for those who are home owners, there is another option. You are living in what is probably the biggest asset you have ever owned, worth many thousands – perhaps hundreds of thousands – of pounds. If only you could release that money and make use of it.

Various schemes are available that offer equity release in your property. Be careful about these as some have been shown to offer poor value. Property Rescue offers an alternative whereby they will buy your home from you and allow you to remain in it as a tenant. The advantage is that cash is released but there is no debt to repay. You can choose to invest the proceeds of your sale, or perhaps use it to top up your pension fund. No matter what you want to do, you should always seek professional advice from an independent financial adviser before you commit to any decisions with long lasting financial impact.

Property Rescue will be pleased to talk to you about the ‘sell and rent back’ scheme. Simply call one of their advisers to talk in complete confidence about your situation. There will be no obligation on you to proceed if you feel this isn’t the right course of action for you.

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Property Rescue will be pleased to talk to you about the ‘sell and rent back’ scheme. Simply call one of their advisers to talk in complete confidence about your situation. There will be no obligation on you to proceed if you feel this isn’t the right course of action for you.

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