Equity release: How to find out if it’s right for you

You’ve worked hard for your money. Now it’s time to make it work harder for you. It’s time to treat yourself to the best life can offer.

You have dreams to follow and time to make them reality.

And your priorities have changed.

From dreams to reality

Perhaps you would like to travel the world (or to some parts of it).

You could help your family get on to the property ladder.

You want to invest and provide a continuous income for later life.

These are realistic aspirations. And they prompt us to asks: how can I finance my retirement?

Life change

As you approach your late fifties, circumstances change:

  • Children leave home
  • Jobs change unexpectedly
  • You leave or retire from full-time work

These situations have a positive effect on your finances. They prompt us to talk about buying a new property.

Reasons for moving home are usually financial and for lifestyle.

At this point, many people consider downsizing as a serious option:

  • Could we free up cash tied up in the existing house?
  • Should we take money out of pensions and investments?
  • Should we keep our savings to one side for a rainy day?

Equity release could buy some freedom if you downsize to a smaller property.

Time to travel

A different lifestyle (and more cash) open up possibilities:

  • Longer holidays
  • Travel to exotic destinations
  • Visiting family and friends in faraway countries like Australia and New Zealand

Two weeks are never enough.

Income from equity

Working out the amount of income we’ll receive needs careful planning. We need to know how much money there is to day to day and make sure our calculations are correct.

If the mortgage is paid off or has now diminished, what if you were to downsize to release some equity?

For many retirees, there’s a large amount of cash ‘hidden’ in the walls of their homes.

When you go on to buy a property which needs little maintenance, your living costs are reduced even more.

You no longer need such a large house.

So long as you have a spare room for overnight stays, a spacious living room and kitchen and generously proportioned bedrooms, you’ll have everything you need in a property for later life.

Storage outside is good too (you can’t imagine life without a garden shed). Cupboards indoors are a must-have for creating floor (and storage) space.

The age to downsize

You can choose to retire at any age.

You can move into an Arbor Living park home from the age of 55. And if you are downsizing from a large, family home, you immediately free up cash for new beginnings – with money in reserve to grow alongside your long-term funds.

Downsizing has been the best option for Lakeshore residents: the key to a new home and an easier life.

Equity release has freed up cash. And given them the means to enjoy the lifestyle they choose.

Talk to your financial adviser about your pensions, investments and financial plans.

  • Protect your money from inflation and keep its value growing.
  • Organise your various pension pots and plan the ways you can draw your pension(s), timing for best effect.
  • Speak to your accountant as well as your IFA. When there are multiple sources of income, you’ll need help completing your tax return.

Of course, happiness in retirement is about much more than your finances.

It’s about being healthy, enjoying a social life, being active (leisure, hobbies and creative pursuits) and maintaining your mental and physical well-being. Everyone needs a purpose in life, whatever their age. Creating a meaningful life among people you enjoy being with will fulfil all your dreams for retirement.

Luxury retirement at Lakeshore

Lakeshore is the perfect location to put your retirement lifestyle plan into action.
Come and talk to us to find out why other residents are so happy at Lakeshore.

View the luxury Arbor Living homes at Lakeshore, Burton Waters. Book by phone or send an email and we’ll call you back when it’s convenient for you.