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Equity Release: Retirement Funds and Beyond

Guide to equity releaseAs we become older, it is an unfortunate fact that we tend to acquire assets while our sources of liquid cash can very much remain few and far between. This has been one of the primary motivating factors behind many individuals drawing upon the value of their home and using these funds to bolster their retirement package. As this article rightfully points out, there are still a number of factors that you need to consider before committing to any such plan.

Looking Ahead

First, how much do you need to borrow? One of the most common mistakes is withdrawing more than you actually require. Always remember that sooner or later, these funds will have to be remunerated.

Secondly, what are the fees involved? Different firms will offer differing fees. These need to be carefully balanced against the amount that you are withdrawing to make certain that you are not burning the proverbial candle at both ends.

Interest rates are another key factor that you need to be wary of. What is the APR associated with the equity release package? Keep in mind that in most cases, the interest will be variable as opposed to fixed. This may present a problem if the Bank of England decides to hike the rates (which is generally inevitable).

Keeping it Simple

These are only three of the concerns that you will have to face. Other questions should be the reputation of the provider, the overall borrowing period, familial concerns and how clear the product itself is to understand.

Compare Funeral Plans UK has put together a handy guide to equity release packages as well as a useful synopsis of how to best use any funds when addressing the costs of a funeral. While reaching retirement age can be rewarding, you always need to be prepared for when living on a fixed income replaces the normal funds that you would have received on a monthly basis. We can help.

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