Have you planned for your loved ones’ later years?
Some say our golden years are the best of our life, and we all want to see our parents and grandparents living comfortable but stimulating later lives. With a bit of planning, we can rest assured knowing that our older loved ones are financially secure. For those responsible for planning their parents’ or grandparents financial future, it might be worth looking into equity release. This technique allows the elder generation to unlock a steady cash flow when they need it most, by releasing some of the money locked up in their property.
What to consider?
Many elderly homeowners find themselves property rich but cash poor. When you reach a certain age, having your money tied into a property is not ideal for your needs, and releasing this capital could allow you to spend a little money on the activities you have always wanted to try.
This could be anything from long and leisurely golf holidays to a trip to a paradise beach or regular cinema dates, dance classes and other entertainment-filled activities.
How much money is tied up in equity?
British people over the age of 50 are estimated to own over £750 million pounds of equity in various buildings. Equity release schemes are a great option for those that wish to unlock some of that hard-earned cash. Once this has been unlocked, your loved ones are free to spend it on anything they desire. It can also be a valuable option for those looking to downsize from a larger house to smaller, more secure accommodation.
There are a number of safe income plans available, many of which boast numerous benefits. It is important to aid your loved ones in choosing a system that can reduce the risk of inherent equity sums, so seek independent, qualified financial advice when making this decision.
Once the collateral has been released, the world becomes your oyster. Your parents and grandparents can concentrate on living their later years to the fullest, knowing that many years of work have finally paid off.
Helping your loved ones to follow their dreams is the best feeling; especially now that they have all of the time in world! Such a plan will allow them to reside in a comfortable home, whilst still being able to enjoy a healthy bank account.