After a lifetime of study and work, the elderly people are both rewarded and protected by a series of measures many goverments implement in a regular basis. Retirement pensions are the most common scheme in these cases, but it isn’t uncommon that aged people are also provided with other benefits including lower health costs, special insurances, and other sorts of monetary aids or special pricing regimes.
The idea behind these aids is that the elderly have more needs than young people, in aspects like health, transportation and accessibility. In some cases, these measures also aim to compensate the insufficient payments from retirement schemes.
Nowadays the retirement system seems quite out of balance due to an aging world changing the proportion of retirees when compared to the working population. The system can get easily saturated and overwhelmed by the increasing number of elderly citizens. Even though public pensions are the classsic scheme for retirement financing, private providers are slowly taking more and more space in the business as some goverments start to fail in providing financial aid for their retirees.
Some of the most common, non-retirement related benefits for the elderly people include special prices in goods and special payment schemes, medical benefits for pensioners, diferential tariffs in public transport, special loans with more convenient terms, and special discounts.
Now, are these benefits enough for the life standards that retirees want to keep? Some people living on a pension face no economical struggles and even are able to afford a nice retirement home abroad in the countryside, or travel around the world having fun here and there, but what about those who live in a tighter situation?
The retirement scheme is meant to solve, or at least minimize, problems related to the aged population with a monthly income and, perhaps, some extra benefits. However, any study of pensioners will show that the elderly do face, in fact, many troubles be them or not money related. In our world, having an extra penny in your pocket can make a huge difference in our lifestyles, our satisfactions and the kind of experiences we can reach. Even problems that aren’t directly related to money, like isolation and health issues, can be at least partially solved with a higher income. More money allows the elderly to access better services, to pay for things they need, and to afford transportation and care.
In cases when pensions aren’t enough, it is understandable that the elderly look for other ways to finance their own lives, especially since an increased life expectancy means that retirees can enjoy decades of life, pursue new projects and try new things before their passing.
Equity release schemes appear as a very valid and very popular option for retired people who want to boost their lifestyles, access new things or simply experience an economical relief, with more margins for any eventuality or anything they’d like to get in the future.
The concept behind an equity release scheme is very simple. When you engage in an equity release deal, you contact a lender who will give you a lump sum - or in some cases, a steady extra income that you can add up to your retirement payments - in exchange for a portion of the ownership of your property.
There are different schemes of equity release, the most popular of which being lifetime mortgages and home reversion plans. There is no option better or worse than the other, it depends on your particular case. How much you’d like to make, how old you are and other circumstances of the like.
Equity release is especially convenient for people who don’t have heirs, or don’t mind not leaving a big inheritance to their descendants. When the borrower dies or moves to long term care, the house is sold and a portion of its value is used to pay the loan of the equity release. If you engage in such a deal, you can still inherit something to the next generation, but the value will be decreased after you pay the lender the part you agreed about.
If you are a retiree and would like some extra money to live a better life, then we advise that you at least consider the possibility of releasing some equity from your house. Do a little research and see whether or not this plan is for you.
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National Equity Release Pension Conference, Bath Street, Bakewell, Derbyshire, DE45 1BX.
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