How to build equity release into my retirement strategy?
Securing your retirement can be difficult when you do not have the money to set aside after expenses. It can also be costly to ask a professional to help you plan your retirement but is that expense worth the cost?
There are other means of finding out what it would cost, like an age partnership equity calculator, where you could do an online check for free. If this is not something you trust immediately, then keep reading to find out how you can start building your equity.
How to turn home equity into retirement income?
When turning home equity into a retirement income, you need to start with your home and how much you could get.
The value of your property will determine the amount of money you get, so the better the property, the higher the percentage of equity you will release.
According to our equity release expert, Aaron Page, working on your retirement plan when you know what you could get for your home is easy because you can budget your monthly equity release payments on a set amount.
Should you sell your home to enhance your retirement plan?
You could sell your home to enhance your retirement plan, but there is also the option of equity release.
With equity release, you can take a lump-sum payout from the value of your property and still live in your home.
Equity release plans give you the option of monthly instalments to enhance your retirement income without leaving your home or selling it.
How can I tap into my equity in my home?
You can tap into your home’s equity by implementing an equity release plan.
A broker can help you evaluate your home and then find a suitable lender to assist you with one of 2 equity release plans.
A lifetime mortgage will give you the money you need without your beneficiaries losing their share of the inheritance.
A home reversion allows you to sell a portion of your home and live in it, but your heirs will stand to lose their estate when the lender sells the house to recover their costs.
What can you do with your money after you retire?
You can do many things with your money when you retire.
You may have wanted to go on a holiday or renovate your home or even invest in another property that you can use as a holiday home.
Many pay for their children’s education or for landscaping to improve their homes.
Should you build equity release into your retirement strategy?
Yes, you should build equity into your retirement strategy.
If your retirement plan does not cover the expenses that you have for your lifestyle, then an equity release plan can help you to secure the money you need to live comfortably.
Common questions
What percentage do you get for equity release?
31 – 60% of the value of your home.
The percentage you get depends on how old you are and if you have any commodities.
When do I need to start thinking about my retirement?
You need to start thinking about your retirement in your 20s by saving at least 10% of your annual income.
How much should I start saving for my retirement?
You should start saving 10 – 20%of your annual income from your 20s so that by the time you are in your 50s, you will be ready for early retirement.
Conclusion
Think about your retirement plan as the last thing you will get to enjoy when you are finished working.
Would you like to live comfortably, or would you like to struggle?
If the answer is that you would like to live comfortably, then you should consider working your equity release into your retirement plan as early as possible to avoid financial disappointment.
