Partner Article

Equity Release Plans Proving Lucrative for Retired Individuals

Happy days are here again for retirees. A significant jump has been taken clearly in the amount of money withdrawn by elder homeowners through equity release schemes. According to reports by The Telegraph, a good number of pensioners have started making use of the locked-up amount in their own properties to ensure that they can lead pleasant retirements. A steady rise of 34% was rather witnessed after considering the average withdrawn amounts in the past 4 years.

The insurers in recent years made significant modifications in the equity release plans out of which the Lifetime Mortgage emerged to be the most popular one in the market. In fact, rates have been cut down to a good extent so that consumers with diverse statuses can meet their financial demands in time.

In fact, numerous firms are planning to initiate an inheritance guarantee so that the equity release plans can get more flexible for retired homeowners. This will surely keep them miles from worries as what they are going to leave to their kids. In fact, a good number of enhanced plans with privileged terms and conditions have also been introduced for those suffering from health complications. With the initiation of new policies, redemption penalties have been made less stringent so that people can deal with tough circumstances and can easily move if required.

The head of a reputed life insurance company, Roger Marsden said that many people had been considering pension for years as the only source of income. Now, the time has come when people will start bagging cash and keep filling their pension boxes with the passage of time.

According to the Equity Release Council, the number of equity release borrowers in 2012 has increased by 11% in comparison to 2011. The average sum withdrawn last year reached £366.5 whereas currently it stands £52,269. In places like in the Northern Ireland where sales figures had always remain subdued, the country witnessed a rapid growth by 46%. Retirees residing in the South East were reported to have raised the highest amount of cash through equity release plans. In fact, the amount withdrawn was recorded 25% more than the previous year.

Surprisingly, London experienced the biggest increase out of all with 50% in comparison to the previous year. According to Just Retirement’s Steve Lowe, minimal annuity rates have strongly affected a lot of pensioners. The majority of them have discovered the fruitlessness of pensions that have rather shattered their expectations to lead a pleasant retirement. People are rather getting interested to utilize their major asset, that is, their home, and equity release in this respect emerges to be a remarkable policy.

Probably, this has led to the high demand of equity release calculator. Property appraisers have therefore got busy to serve retirees who need equity release calculator help. The sun has once again shone bright for the retirees who can now dream of carefree retirement days with best equity release plans.

This was posted in Bdaily's Members' News section by Aalina Jones .