According to the study, which was conducted by Lloyds TSB, the typical British household has around £5,000 put away in various savings accounts, which is well under the figure of £19,000 for families in China, while the average savings in Germany was found to be £9,000.

Lifetime mortgages

People worried they do not have enough money put away may therefore wish to look into the possibility of lifetime mortgages as a way to raise some funds to boost their balances.

Greg Coughlan, head of savings at Lloyds TSB, said: "Despite significantly higher income levels, today’s British and German households are both being roundly beaten in the savings stakes by urban Chinese households."

But he noted there appears to be an indication that British families are paying more attention to their savings, which may mean those in the future may have put away more cash.

However, with many people approaching their retirement this year or in the early years of their post-work life, there may be concerns over the amount of money they have been able to save.

Savings decreasing

The poll by Lloyds TSB also found that over the course of the last year, the total amount of cash saved by British households has decreased, perhaps due to factors such as the UK's record low interest rates and the high rate of inflation at the present time.

Annie Shaw, founder of CashQuestions.com, recently pointed out older people feel the pinch a lot more than their younger counterparts, because inflation has a greater effect on them and it is currently running well above the target rate of two per cent set by the coalition government.

For those who have found it hard to keep their bank balances looking healthy, using the equity release calculator from Key Retirement Solutions could prove to be a good option.

Posted by Richard Planner

But according to Age UK, it is not clear whether or not equity release schemes are set to be included in the coalition's white paper on social care reform, even though this is arguably the biggest issue facing the sector at the present time.

The coalition government has previously stated it wants older people to sell up their homes and downsize to smaller properties in order to free up residences for younger families, but many are not happy with this as they want to stay in the same house for the rest of their lives.

Eligibility

Head of public policy at Age UK Jane Vass explained some homeowners may find they are not eligible for equity release plans if they are on a lot of means-tested benefits from the state.

Speaking to Money Marketing, she noted there is a wide breadth of finances among older people at the moment, with not everyone on the breadline but many unable to call on a large pension.

"Equity release is not the right course for everyone but it is an important option to give to people. After two commissions, we still have no settlement on the single biggest issue facing society," said Ms Vass, who added long-term care is to be the focus of Age UK in 2012.

For those who are short of money but not ready or willing to move into residential accommodation, lifetime mortgages are one of the options available to help them release some money from the value of their home that can then be used to pay care bills.

Adjustments needed

Ms Vass called for local and central government to adjust to the changing needs of the older population, with individuals set to live for longer due to improved healthcare.

The coalition recently announced it is launching a new campaign with the aim of encouraging people to save for their retirement from earlier in their life.

For those already approaching their retirement who want to boost their financial situation, using the equity release calculator from Key Retirement Solutions could be a good starting point.

Posted by Tom Papworth

This could see equity release plans rise in popularity as they allow a person to person release tax-free cash from their home to spend as they wish, with typically no monthly repayments to make.

According to a new report by Prudential, 18 per cent of people retiring this year will do so in debt, with the average amount standing at almost £40,000.

These debts could be eliminated through the use of lifetime mortgages – a specific type of equity release plan – which allows a person to release a cash lump sum, which can be used to clear all debts.

Manageable programme

Vince Smith-Hughes, Prudential's retirement income expert, said: "With a manageable repayment programme in place, debts need not become an issue for this year's retirees – and there is plenty of help available through the Money Advice Service and Citizens Advice Bureau."

He added retiring with debts may be a sign of a lack of retirement planning earlier in life, which may persuade younger homeowners to investigate options such as equity release schemes.

Mr Smith-Hughes also recommended individuals save as much as they are able to during their working years in order to avoid financial problems in their retirement.

Financial advice

Using an independent financial adviser could also be a good way for homeowners aged between 55 and 95 to look into their options for their later years to ensure they have enough money.

Chief executive of housing charity Shelter Campbell Robb recently told anyone struggling with debts to get advice from an expert as quickly as they are able to.

For those wanting to unlock money from their home in a bid to boost their finances, using the equity release calculator from Key Retirement Solutions can be a good first step to doing so.

Posted by Richard Planner

Download the full report at: http://www.keyrs.co.uk/media/MARKET-REPORT-ANNUAL-2011.pdf

The equity release market is firmly established back on the growth trend with the first annual rise in both total lending and sales of plans since 2007, analysis from leading independent equity release adviser Key Retirement Solutions.

Total funds* released rose 5.4% to £959.6 million the first rise in four years – while plan sales continued the growth seen in 2010 with a 1.6% rise to 22,366 in 2011, the group’s 2011 Equity Release Market Monitor shows.

And once untapped drawdown funds – which have yet to be released – are added in total lending rose to more than £1.3 billion underlining how innovation through increasing use of drawdown has transformed equity release.

Key Retirement Solutions is however concerned that not enough clients are using drawdown and want to see its share of the market increase. Its own sales see 74% of drawdown compared with the market average of 55%.

Customers using drawdown plans benefit from lower borrowing costs because they are able to draw funds when required rather than in a one-off lump sum. The rise of drawdown is reflected in the average amount released by customers falling again to £42,921 which compares with £43,519 in 2010 and £48,212 in 2009.

Dean Mirfin, Group Director at Key Retirement Solutions (www.keyrs.co.uk), said “A robust sales and factfinding process has resulted in Key’s percentage of new drawdown business for the year being 74%, considerably higher than the market average, and we believe that there is still work to be done in the sector to ensure that consumers are not taking on single advance equity release when they do not have a requirement for the funds all at once. Facfinds need to identify clearly when funds are required. Drawdown can save consumers many thousands of pounds on the overall cost of borrowing.”

Home and garden improvements remained the most popular use of equity release cash – 57% of customers used some or all of the cash for that with 32% using money to clear debts and 30% to help fund holidays. The numbers using cash for regular bills dropped from 21% in 2010 to 16% in 2011.

Across the country 7 out of 12 regions saw growth in the total number of plans sold with Wales seeing growth of 24% and East Anglia 15%. The North West saw a 8.25% fall in sales.

The biggest growth in total value released was in Wales where total value increased by a third while East Anglia saw totals climb by a quarter. In total eight out of 12 regions saw increases.

Dean Mirfin, comments further: “The equity release market is firmly established on a growth trend again after several years when the story has been about stagnation at best and decline for some providers.

“Innovation has enabled the industry to turn its fortunes around and the products available now are much more suited to customer needs by providing flexibility and control over the cost of borrowing.

“It is striking that there is around £343 million of undrawn cash ready to be used by customers. It may be they won’t use it or need it but in the past they would have been forced to take more money than they needed.

“Rate cuts and further innovation by providers including more plans offering enhanced terms for customers with medical or lifestyle conditions points to further potential growth this year.”

Across the country 7 out of 12 regions saw growth in the total number of plans sold with Wales seeing growth of 24% and East Anglia 15%. The North West saw a 8.25% fall in sales.

The biggest growth in total value released was in Wales where total value increased by a third while East Anglia saw totals climb by a quarter. In total eight out of 12 regions saw increases.

The full Market Monitor can be downloaded at Key Retirement Solutions’ website http://www.keyrs.co.uk/media/MARKET-REPORT-ANNUAL-2011.pdf

Anyone looking to release equity from their home can get Key Retirement Solutions’ independent guide to equity release by calling 0800 531 6010 or visiting https://www.keyrs.co.uk/free-guide.

Equity release mortgages are one of the financial products people could use to release cash from the value of their property in order to enjoy a luxury break in a location such as Spain.

According to a report by OK! magazine, the European nation is one of the best in the world for spotting celebrities also enjoying a break from the UK.

Mallorca beaches

It highlighted Mallorca as one of the most popular places for Britons to head to, with the beautiful beaches of the south coast around the capital of Palma among the main attractions.

The island has some of the best hotels Spain has to offer and could be ideal for those using equity release plans to raise enough money to book the holiday of a lifetime.

OK! noted: "The rich and famous are not immune to its charms either, with the likes of Tom Cruise, Pierce Brosnan, Michael Douglas and Catherine Zeta-Jones all believed to own property, or be regular visitors to the largest of the Balearic Islands."

Britons booking trips to Mallorca may therefore wish to ensure they take their cameras with them so they are able to get a snap of some famous faces during their break on the island.

Distinctive Marbella

Marbella was another area singled out by the publication as one that is popular among the rich and famous, with Craig David, Sir Paul McCartney, Bruce Willis and David and Victoria Beckham known to be among those who love the "distinctive" charm of the location.

Lorreine Kennedy, founder of Carematters-uk.com, recently noted wanting to go on a holiday of a lifetime is one of the reasons people turn to equity release schemes to raise money from the value of their residence.

Although some individuals use the cash brought in from lifetime mortgages to help out friends or family or to cover the cost of their care, others will want to spend it on something they will have memories of for the rest of their lives.

Those considering the financial product could use the equity release calculator from Key Retirement Solutions to see how much money they could release from the house.

Posted by Tom Papworth

According to a study conducted by Bupa, less than a third (30 per cent) of those who responded to the poll believe they are going to have to pay for their care in their later years.

This could mean equity release mortgages are set for a boost in popularity, as older homeowners may find they are left with few options to raise money.

Meanwhile, only 33 per cent of those over 65 polled by the healthcare provider said they have managed to save any money at all for their retirement.

UK director of Bupa Care Homes Oliver Thomas explained a person in this demographic is likely to need as much as £50,000 to cover the cost of their care in their later years.

He noted this is due to expenses such as home adaptations, meals on wheels and care home fees, but highlighted the fact one in ten individuals will have to save double this amount.

With a £100,000 bill for some homeowners aged between 55 and 95, this could lead to equity release plans being considered as a way to raise the required funds in retirement.

"Most people assume all care in old age is covered by the NHS, but it's not, so paying for care can come as a shock," declared Mr Thomas.

He added women are more likely to need social care than men, due to the fact that on average they live for longer, which means it is especially important they are prepared for retirement.

"We'd urge people, particularly women, to talk to relatives and loved ones about saving for old age," said Mr Thomas.

The research also found 16 per cent of Britons believe they are going to have to sell their house to cover the cost of their care, with equity release schemes an option for these people.

A report by the Daily Mirror recently suggested lifetime mortgages could be an option worth considering for those who do not know how they are going to cope financially in their retirement.

Using the equity release calculator by Key Retirement Solutions could be a good place to start for those who want to investigate their choices in more detail.

Posted by Alison Stephenson

According to Lorreine Kennedy, founder of Carematters-uk.com, people of this age are increasingly considering equity release mortgages to release some of the money locked away in their home, so they can continue to enjoy life to the full.

She pointed out people in this position may have seen their savings eroded in the last few years, with factors such as the UK's record low interest rates perhaps having an impact on this.

The Bank of England's Monetary Policy Committee has held the base rate at 0.5 per cent for almost three years and many financial commentators believe this will continue to be the case for many months to come.

Care costs

Ms Kennedy also noted people in their early 70s are going to find the cost of the care they need is going to go up, so they will have less money available for their social lives than in the past.

But she pointed out there is no ideal age to take advantage of equity release schemes, as it depends on the circumstances of the individual involved.

An increasing number of people in their 50s are also investigating equity release plans as they have lost their jobs due to redundancy, it was noted.

"They have adequate pensions, don't want to move house, but still have a mortgage," she said, adding: "For this group of people, an equity release can take away the worry of having to make monthly repayments."

Baby boomers

Ms Kennedy declared she believes the baby boomer generation will have to rely on equity release in order to supplement their incomes in their later years.

Last month, research from the Equity Release Solicitors' Alliance was published showing lifetime mortgages are becoming an increasingly popular option for older people looking to raise money.

Some 38 per cent of the adults polled by the organisation admitted looking into the possibility of raising money from the value of their homes in this way.

Those who want to learn more about the financial product could use the equity release calculator from Key Retirement Solutions to see if they are able to take advantage of lifetime mortgages.

Posted by Claire Ford  

Older people are affected by high rates of inflation more than other sections of society and this may mean they turn to options such as equity release mortgages in order to raise money.

Inflation now stands at 4.8 per cent, which is only a slight reduction from the figure of five per cent recorded in the previous month.

It was noted downward pressures on the headline rate included food, petrol, clothing and furniture, household equipment and maintenance.

However, energy prices continued to drive inflation up, which is likely to be bad news for older people as they need to heat their homes more than younger individuals.

Low interest rates

Commenting on the release of the new inflation figures, Stephen Jones, manager of the Kames Inflation Linked Fund, said it offers some respite for the coalition government and the Bank of England's Monetary Policy Committee, both of which have been criticised for record low interest rates of 0.5 per cent.

"Absolute price levels for goods and services though remain at much higher levels than a year ago. The consumer price index has come in as most people in the market expected," he said.

The UK's largest union Unison also warned the austerity measures imposed by the coalition government since it came to power are damaging the economic recovery.

Financial pressure

General secretary of Unison Dave Prentis said: "Christmas should be a happy time, but for many people the stress of finding, or keeping a job, means the financial pressures are enormous. When you add in the cost of food and fuel, there is not a lot of spare money to spend in the high street."

He pointed to the fact many companies have had to put sale signs up in their windows ahead of the festive period, when usually this would be delayed until after Christmas, as an indication the policies by prime minister David Cameron and chancellor George Osborne are not working.

Older people struggling to cope with the rising cost of energy may be forced to consider ways to raise money from the value of their home to make ends meet.

Using the equity release calculator from Key Retirement Solutions could be one good starting point for individuals who find themselves in this position.

Posted by Tom Papworth

One of the options available to individuals in this position is to use equity release schemes, which are available to homeowners between the age of 55 and 95.

According to the Daily Mirror, equity release plans could be worth considering for those who are unsure of how much money they will have in their retirement.

The news provider pointed out those who leave their planning until the last minute will not have as many options as people who think ahead and begin to make provisions as soon as possible.

It noted recent research from Bupa has found as many as 70 per cent of individuals believe the cost of their care in their later years is due to be met by the NHS.

Other arrangements

However, this is not the case, so people without a plan for this may find they have to come to other arrangements to make sure they have enough money to be looked after.

Director-general of Saga Dr Ros Altmann pointed out nobody is doing anything about the future of care provision funding at the present time.

She highlighted the fact that a lot of people simply do not realise they need to ensure they are going to have enough money to pay for their own care in their later years.

"There's virtually zero put away because of this lack of awareness and there's no incentive to save," she said.

Government action

Dr Altmann is therefore calling for the coalition government to offer a cash-free Isa linked to care fees savings in order to persuade individuals of the need to put money away for the future.

"If you need care you need more than a pension to pay for it. This won’t go away. As we are living longer, more and more people will have to face this," she declared.

Furley Page Solicitors recently said equity release schemes are a complex area that need legal advice to explain in full before individuals make a decision whether to proceed.

Those wishing to find out more about equity release plans could head to Key Retirement Solutions and use the equity release calculator on the site.

Posted by Alison Stephenson

But for those who do not want to move out of their home and undergo the stressful process of a house sale and a relocation to another property, equity release plans may be a good idea.

Vanessa Owen of LV= told the Independent these financial products should be a "prime consideration" for those nearing the time they are going to give up work.

"Planning ahead and discussing every available option is key to securing a comfortable retirement," she advised those looking into equity release plans.

Interest rates

With interest rates remaining at a record low of 0.5 per cent in the UK and looking as if they are going to stay this way for some time in the future, those relying on savings are likely to find their money is being eroded over time due to the higher rate of inflation.

Recent months have seen the headline rate push above five per cent, with the rising cost of bills for gas and electricity one of the major drivers of this.

Ms Owen said: "People can look at downsizing to release the equity in your property, or this can also be done through an equity release plan if you want to remain in your current home."

Property ladder

She also pointed out downsizing may only be an option for those who are high enough up the property ladder to be able to move to a smaller property and still have enough money left over from the new purchase to fund their retirement years.

It was pointed out many individuals do not want to consider leaving their family home, which will hold memories from throughout their lives, so equity release schemes could be a good choice.

Jane Wilson, a manager in the wealth management department at Dickinson Dees, recently noted now is a particularly daunting time to be embarking on retirement planning due to the fragile state of the economy in the UK at the present time.

Speaking to Newcastle-based newspaper the Journal, she explained the first step for those coming up to retirement has to be deciding how much money they are going to need.

Using the equity release calculator from Key Retirement Solutions may prove to be a good move for those who want to know more about the financial product.

Posted by Richard Planner