A study of the retirement market by Saga Insurance has shown that equity release schemes are being used by many people to help boost finances in retirement, helping them do the things they want to do with their time.
Contrasting with a more conservative view a few years ago, around 88 percent of those surveyed by Saga Insurance, now feel equity release is a good idea. In the past the more common view was that the home should be left to children as part of the inheritance.
With nearly 80 percent of those aged 60 and over having paid off their mortgages there is certainly a substantial amount of money available that is tied up in property. The equity release option frees up this money to provide a more pleasant lifestyle.
New research by Zurich Insurance has shown that people in the UK are not retiring at the expected age, primarily because they have not planned their finances adequately.
Almost two thirds of Brits at retirement age are thinking of remaining at work, with nearly a third also expecting to have to work as they need the money. Another third though are doing it simply to stay active, in both mind and body, which shows how society and lifestyle has changed said a Zurich Insurance spokesman.
There are so many financial pressures in modern society meaning that retirement costs more than ever. This is a realisation that some people are coming to only now said Zurich Insurance, showing how important good pension planning is.
The Prudential has advised with profits policyholders that there will not be a windfall payment to them of surplus funds after considering the option fully.
There was a consideration of the option, working out at around GBP1,000 per person which would have been in exchange for these customers giving up the right to any future pay outs from the assets the Prudential inherited from other companies. However it has been decided that the inherited funds will be better employed withn the organisation right now, especially in the current economic climate where financial institutions are looking to maintain as much financial fluidity as they can.
Customers of the Prudential will surely not feel too aggrieved by the decision since it looks like the sensible and considered option to most commentators. It is better to have a strong business than no business at all.
