When planning for retirement it is advisable that you aim to have several income streams for when you are finally able to give up work. Ideally you should aim to have a substantial pension pot, independent savings and investments, as well as other assets that all can be used to provide a retirement income.
You may also want to unlock equity held in your home into cash to help fund your retirement plans. Equity release or a retirement interest only mortgage can help you unlock the value in your home.
Before creating a retirement plan it is advisable to speak to an independent financial advisor who will be able to give you some impartial advice about what would suit your personal circumstances. You can also visit our retirement guides section to read more about pensions, equity release and annuities.
Annuities are a way of providing a guaranteed income for life when you retire. You can use the money you have saved in a pension to purchase an annuity which will then provide you with a monthly, quarterly or annual income for the duration of your lifetime. The amount of income you get depends on how big your pension pot is and which options you choose for your annuity income, for example whether you choose to buy an escalating annuity that pays less at the start but increases in rate of inflation. To find out more visit our annuity page.
Equity release provides retirees with a way of releasing money from the value of their home without having to move. Normally an equity release provider will allow you to release up to 60% from the value of your home, depending on your age, however it is important to remember that equity release does come with substantial risks. To find out more about equity release our guide provides an overview while our equity release page provides a contact for our trusted equity release broker.
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