The present economic condition of the country is driving many a people in different age groups to think about their savings when they reach the retirement age. For those who are about to retire and have not much savings are having a tough time managing their finances now that the costs have gone up so high. Even the government is now curtailing some of the benefits that it used to give to the middle classes. People are having a hard time figuring out just how much will be enough for them when they retire and a still harder time thinking how they are going to save it.
According to the research conducted by the Equity Release Solicitors’ Alliance (ERSA), an increasing number of homeowners are becoming interested in the proposal of release equity on their properties. The research has also shown that people are unable to save enough money for their retirement years and are also unable to decide just how much money they need to allocate for their retirement fund.
Another research has shown that the way our economy is going, an individual would need about £200,000 in order to generate a monthly income of £1,361. Not more than 1 in every 4 working individuals is able to save such an exorbitant amount by the time they are going to retire as the monthly savings of 32% of the respondents is less than £250.
According to the chairman of ERSA, Clair Barker, there is a gross lack of awareness about the amount of money one needs after retirement. As a result, a large number of people are drifting into retirement wit6hout adequate financial preparation to take on the journey. However, a number of equity release providers are taking steps to educate the people about this and more and more people are becoming increasingly inclined towards the various equity release plans.
There are a number of benefits of these plans and the major one is that you get lump sum money against your home without having to move out of it. There are many plans and a financial advisor would be the best person to help you choose the most suitable one. it is better to consult an independent advisor rather than the one the equity release providers send. It would be very prudent for the consumer if they compare equity release plans to make sure that they are getting a fair deal.