The changes are primarily around flexibility and allowing individuals to have control over their pension income in retirement. The government proposes that there will be no requirement to purchase an annuity and no restrictions on the amount of income that can be drawn from the accumulated fund. But will this help you?

Planning for Retirement

When planning for retirement, it’s important that you take into consideration all of your assets. For some of us, after working a lifetime to pay for our retirement, we can discover that our pensions, savings and investments are not sufficient for us to enjoy our retirement the way we thought we would. It is at this point it becomes important to make use of all the assets we can. For most of us, our biggest asset remains our home, which is why Equity Release may be the solution for you.

Equity release schemes

Equity Release Schemes allow people over the age of 55 to release a lump sum from their property, whilst continuing to live in their home for as long as they wish. Equity Release or lifetime mortgages are a type of loan, which is secured against your home. It allows you to release a cash lump sum or take smaller amounts as and when you need them from the value of your property. You continue to own your home and benefit from any increase in its value. With most lifetime mortgages, there are no regular payments to make and nothing has to be paid back until the end of the plan. You can choose however to pay the monthly interest on the loan allowing the amount of capital borrowed to remain level.

Get in touch to find out more about Equity Release

To understand more about Equity Release, or to arrange a complimentary review of your retirement plans, please contact either Michele Parker or Carly Tombs on 01803 652071. For further information relating to all aspects of Personal Financial Planning and how Pavey Group may be able to assist you please click here.