Supplementing Your Pension with Equity Release

Pension issues affect everyone in the UK. For many retired Britons, these issues are all too real since they face them on a daily basis. However, they are able to live on a small pension and their limited savings. Many of them live on property that is worth a lot of money. In England and Wales, the average price of a home is £167,423. An equity release plan or lifetime mortgage is a home income plan. It’s a way of releasing cash. You can use it to pay for home improvements, buy a car, pay for holidays or simply make your everyday life more comfortable. These plans allow you to borrow money against your home’s value. Your debt is repaid when your home sales after your death. How Does Equity Release Work? This plan may be complicated and it’s a major step for most people. For many, their home is their most expensive asset. Plus, it’s your home. It’s important to get good advice. You’ll want an Independent Financial Adviser (IFA) to look over your finances to see if this is the right avenue for you.  Equity Release Plans are Appealing • You get a lump sum, perhaps a regular income, sometimes both. Your lump sum may be several thousands of pounds. You may receive even a hundred pounds a month or more. • The money released from the principle value is tax free.  • To unlock equity, you don’t have to sell your home. • These plans are legal and can even be used to give children or grandchildren money for their own property. • You can use them to pay off bills.  Equity Release Calculator Equity release calculators help you to see if you qualify for this program. They allow you to see how much you’ll be able to release from the home. The calculator is easy to use. First you have to fill out the form for the equity release calculator. Be sure not to leave anything blank. Here are the requirements to qualify for the program. • Be between the ages 55-95 • Be a homeowner in the UK • Your home must be worth over £50,000 After the form has been completed, you’ll hit the calculate button and receive your results. Going this route may not suite you, sometimes it doesn’t suite everyone. However, it’s worth checking out, especially if you can’t raise the funds you need from other sources. This may be the option for you.