If you are in the mood to look forward, it is not unreasonable for you to make plans for your golden years. You might have concerns about your retirement, and whether you will enjoy enough of a pension to live in good comfort.
It is no surprise to learn many people are looking at their property as a way to help them maintain a good lifestyle when they no longer have to work.
At Austin Property Services, we know many people view the local area as a fantastic place to spend their retirement, and we are always on hand to help you consider your next move.
What are your future plans?
In a study carried out by Legal & General Home Finance, 35% of respondents who own a property but aren’t currently retired have less than £10,000 in their pension savings. 22% of respondents have no pension savings at all.
Therefore, when you consider the increase in property values in recent years, it is easy to see why some people are considering using their property wealth to pay for their retirement.
By considering the current level of property prices in England and Wales, it is possible for the average homeowner to access more than £72,000 by releasing the equity from their home.
The same study found that respondents who are yet to retire have the following expectations:
10% expect to downsize their property
9% expect to sell their property
6% expect to access equity by taking out a lifetime mortgage
Do you need help with future property plans?
With 70% of people over 65 being dependent on the state pension as their leading source of income also being homeowners, it is not surprising some people will look to this form of solution to help them in their golden years.
Claire Singleton, CEO, Legal & General Home Finance, said: “The significant increase in house prices in recent years has likely shifted many people’s expectations of the role property wealth will eventually play in supporting their retirement. We anticipate that using your home to fund your retirement will become more commonplace in the future, whether that’s by downsizing to free up funds or releasing money tied up in your home through products like lifetime mortgages. It's never too early to start thinking about how you plan to fund retirement and to seek the appropriate advice to get your affairs in order, and for many homeowners, their property could be the key to getting the lifestyle they desire.”
Claire also said; “Our findings also show there are a large number of people currently in retirement who may be on a limited income and could benefit from the likely increases in the value of their home. It’s important we challenge the discomfort some people still have with using cash from their home to help them achieve better financial outcomes in retirement.”
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