Financial Advice for Over 55s
If you are looking for trusted, qualified and experienced advice from an adviser who has been helping customers with their mortgage and insurance requirements for over 25 years, talk to Andy. He will help guide you through all your later life lending options so you can make an informed decision as to what is best for you.
Andy Rowden, Over 55s’ Finance Specialist
Is the financial advice you need today different from what you needed 30 years ago?
We think so! Get the right financial advice for over 55s.
If you are aged over 55, do you think the Financial advice you require is different to that you received when you were 25 or 35? If you say Yes, Andy can help you!
Being comfortably in this age group, he has advised people on Finance for over 25 years and many clients have been with him for the 25 years and as a lot of things in their lives have changed, their Financial advice requirements have also changed as they get older.
Andy uses his considerable experience and knowledge and the fact he fully understands the changes in the required advice so he can properly investigate all the most suitable options for you. The content below on this page is written by Andy himself.
On this page:
- Lending Into Retirement
- Equity Release
- Retirement Interest-Only Mortgages
- Pensions and Investments
- Over 55s’ Life Insurance
Lending Into Retirement
“I’ve heard there are not many Lending into Retirement options available to people over 55”
“I don’t have enough Pension income to enjoy my retirement”
“I have heard bad things about Equity Release”
“We want to stay in our home, but our current Lender says we need to sell it”
“We would love to financially help our children/grandchildren, but cant afford to do so”
“I want to enjoy my Retirement without the financial pressures”
“Are there options for lending into retirement for my buy to let(s)?”
I have heard all (and more) of the above comments in my time advising.
If you are aged over 55, do you think the Financial advice you require is different to that you received when you were 25 or 35? This is the question that kept coming up when I was discussing Finance with clients aged over 55.
Would you prefer to receive this advice from someone in the same group who personally understands this question?
I have been providing trusted advice ( Look at our Google 5* reviews) to people about Finance for over 25 years and many clients have been with me for these 25 years and as a lot of things in their lives, their Financial advice changes as they get older so I use my considerable experience and knowledge and the fact I fully understand the changes in the required advice to properly investigate all the best options.
There are a number of options available to you for lending into retirement and with my experience and qualifications, I will ensure I look at all of them for you.
The over 55s’ package is designed to help you find the right products for handling your estate during your life, securing the future of your estate after you die and more. We want what’s most appropriate for YOU and for you to enjoy your retirement!
Equity Release
We appreciate that choosing to release money from your home is a big decision and it is important to realise that there is more than one option available. Therefore, it is important to get advice to find out all the options available alongside all the benefits and considerations.
Why equity release no longer deserves its bad reputation of the past:
Modern equity release products are different from how they used to be years ago. You may have heard some horror stories of the past, where people inherited a significant debt as well as losing their parents’ property. That can no longer happen because:
all policies now come with a ‘no negative equity’ guarantee
the market is fully regulated by the Financial Conduct Authority who insist on additional training and certification specifically to be able to sell and advise on equity release products
by choosing a member of The Equity Release Council, such as ourselves (see our page on their website) you know that we have agreed to abide by the Council rules and have signed up to the Statement of Principles
there are a lot more lenders now involved so the choice and options are much more than they used to be
What equity release can be used for:
Repaying an existing mortgage or other debts to reduce your monthly outgoing
Home improvements
Take your whole family on a special holiday
Be able to help children/grandchildren with a deposit for a house or in some other way
Supplement your income for a more comfortable retirement
Supplementing your income for a more comfortable retirement
What is Equity Release?
Equity release is simply the process of turning the equity in your home into cash and is designed to help qualifying clients who either own their home outright or have a relatively small mortgage outstanding. You can either borrow against the value of your home, or sell all or part of it in return for a lump sum or a regular monthly income (or both in some instances). The loan will be repaid at a later date when the property is eventually sold.
Why is equity release becoming more popular?
The realities of later life are changing. Few of us are lucky enough to have a final salary pension and annuity rates have diminished. Meanwhile, we’re living longer and able to stay more active into later life, which means we need an income for more years. You might also find that your house needs a new roof and you’d rather not blow your savings to pay for it. And, if you have children you’ll know how hard it is to get a deposit together for their first home. These pressures mean we have to find different ways to fund our later years and equity release is just one of the ways we can do this.
How does equity release work?
There are 2 basic types of product: lifetime mortgages and property reversion schemes.
LIFETIME MORTGAGES These are interest only loans secured against your home or in some cases a buy to let owned by yourself. Any unpaid compounded interest plus the sum advanced are recovered from your estate.
PROPERTY REVERSION This is where you are paid a sum of money in return for a share of your property. The lender gets the same percentage share of your property value (including any appreciation) when you die. There are also hybrid schemes with elements of both.
*Equity release includes Lifetime Mortgages and Home Reversion Schemes. We can advise and arrange Lifetime Mortgages and will refer to an approved specialist for Home Reversion Schemes. Lifetime Mortgages are applicable for over 55s only, may affect means or state tested benefits and can affect the inheritance you may leave.*
Think carefully before securing any other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage.
Retirement Interest-Only Mortgages
What is a retirement interest-only mortgage?
A retirement interest-only mortgage is only available on your main residence and is very similar to a standard interest-only mortgage, with two key differences:
The loan is usually only paid off when you die, move into long term care or sell the house
You only have to prove you can afford the monthly interest repayments. This can be a major issue as they are only based on pension incomes and often only using the youngest pension income for assessment, so they are often very difficult to obtain.
While there’s no minimum age requirement, retirement interest-only mortgages are generally aimed at older borrowers, such as the over 55s, over 60s and pensioners who might find them easier to qualify for than a typical interest-only mortgage due to more flexible age restrictions.
In some cases, high street lenders particularly the Building Society’s will lend until age 90 if the income is provable and acceptable.
Pensions and Investments
People generally ask themselves a series of very important questions as they get closer to retirement:
Will I run out of money during my lifetime?
How much income will I need when I stop work?
How do I arrange my affairs tax-efficiently?
Which is the best way to invest my money?
Should I help the children out while I’m still alive?
Will I have to pay inheritance tax when I die?
How do I create a financial retirement plan that is simple to follow?
How does my pension work and what options does it give me?
Should I downsize?
What’s the difference between Pensions, ISAs and other of the many types of investments used for retirement
How do I ensure my loved ones are taken care of?
Pensions and Investments can be bamboozling at any stage of life, but when your future depends on them as you slow down your work-life, things can feel overwhelming.
Particularly with regard to pensions, the government seem to be tinkering with the rules which leaves people extremely confused about their options.
So what can you do?
It’s not surprising that things can feel a little overwhelming with so many thoughts on peoples’ minds.
As everybody’s situation is different, it can be extremely valuable to have an expert look at your specific circumstances and talk through what’s most important to you and your family, and then work with you in partnership to create a solid workable plan. That person must be someone you learn to trust who has your best interests at heart.
Whatever investments and assets you have, you can make the best of them with a little help.
We want to help you with your pension investigation! At The Financial Detectives we can refer you to our trusted partner who can advise you on all elements of your pension.
CLICK HERE to view a video on some information specifically for over 55s looking for information about pensions and investment
Over 55s’ Life Insurance
Do you want to leave your loved ones a lump sum of money on your passing to pay off a mortgage, pay for a funeral, living expenses etc?
Does your estate have an Inheritance tax issue and you do not want it to be paid from your estate?
Learn more…
We all know it’s important to protect our valuable assets, and the most important asset we have is ourselves!
There are a number of options available for anyone aged over 55 who want to provide a lump sum payment on their passing maybe to repay a mortgage, pay for a funeral, provide a lump sum for loved ones etc. One of them is an over 55’s life insurance plan. These have become popular due to the fact they do not require any medicals to be accepted for them, but they are not for everyone!
One of the warnings you will see on them, is you may pay in more than you receive out mainly due to non-medical requirements and the resultant low level of cover. If you are of reasonable health, you may be better served by looking at other options to provide a lump sum on your passing.
These could be the traditional term insurance which can go to age 90 or one that provides a guarantee pay out regardless of the age you pass and that’s called whole of life, the more expensive option, but often is the best return for your money.
Talk to us and we can discuss all the ones available to you, to help you decide what is best for you.