Data unveiled today (January 25th) by the Office for National Statistics showed GDP fell by 0.2 per cent in the last three months of 2011, a quarter of the year that is traditionally a boost to the economy due to the festive period.

Annie Shaw, founder of CashQuestions.com, pointed out inflation is at a high level at the moment and this has a greater impact on older people, who may decide to look into lifetime mortgages as a way to raise money.

Price rises

Ms Shaw said: "The things that are going up in price tend to affect older people much more. Although everybody is feeling the pinch, older people are feeling it perhaps more than other sections of society."

She suggested the first thing individuals concerned about the state of their finances need to do is to sit down and review all of their outgoings so they know exactly how much money they need to survive each month.

The next step to take is then to check they are not paying more than they need to for their essentials such as fuel and food, as this can be an area they can make major savings.

Internet deals

It was highlighted by Ms Shaw this can be hard for older people to do if they are not connected to the internet, due to the fact this is where many of the best deals on energy are to be found.

Chancellor of the exchequer George Osborne blamed the GDP figures on the ongoing eurozone crisis, which is showing no signs of coming to a conclusion.

For those wishing to raise some money so they do not have to worry as much about high rates of inflation and the UK's record low base rate of interest, using the equity release calculator from Key Retirement Solutions can be a good starting point.

Posted by Richard Planner

Equity release mortgages are among the options available to people in this position and they may be a particularly attractive choice due to the fact that they allow individuals to unlock money from the value of their home without having to sell up and move to another property.

According to figures from Prudential's unique Class of 2012 research, people retiring at some point in 2012 are expecting to have an average annual income of £15,500 to live on.

This is a fall of around £1,000 on the numbers from a year ago, showing the extent to which retirement incomes have fallen over the course of the last 12 months.

Equity release schemes may therefore prove to be a good selection of financial product for those who are concerned this is not going to be enough for them to be economically comfortable.

Perfect storm

Vince Smith-Hughes, Prudential's retirement income expert, stated the current economic climate in the UK has created a "perfect storm" for those nearing the time they plan to give up work.

"The impact of the credit crunch, banking crisis, recession, and concerns over the eurozone, has been reflected in the fact that expected retirement income levels have hit a five-year-low," he said, adding it is "concerning" that expected incomes are dropping at the same time pensioner expenditure is rising.

Financial advice

Mr Smith-Hughes recommended appointing a personal financial adviser in order to get the most of retirement incomes and make the right decisions regarding money.

Earlier in the year, research by Skipton Building Society found 40 per cent of people are going to try to look after their cash better in 2012 as a new year's resolution.

Using the equity release calculator from Key Retirement Solutions could be a good idea for those who are tempted to unlock money from the value of their property.

Posted by Tom Papworth

This means that more financial planning has to go into retirement, which may see many people move towards equity release schemes as a way to fund their retirement years.

Research carried out by the Department for Work and Pensions found a person born in 2011 has an eight times better chance of reaching a century than someone who was born in 1931.

Girls now have a one-in-three chance of making it to 100, while boys have a one-in-four opportunity.

This, coupled with the lack of investment in pension schemes from those in their 20s, showcases how individuals need to start seriously considering how they will fund their post-life work.

One option open to homeowners aged between 55 and 95 is an equity release scheme.

People will be able to get a lump sum of cash to help them financially, while they also get to keep the security of their house.

Minister of state for pensions Steve Webb said: "These figures show just how great the differences in life expectancy between generations really are.

"The dramatic speed at which life expectancy is changing means that we need to radically rethink our perceptions about our later lives.

"We simply can't look to our grandparents' experience of retirement as a model for our own. We will live longer and we will have to save more."

As the average age that people live to continues to swell, then the need to address the situation will also intensify.

With 500,000 citizens expected to be 100 or older by 2066, this is not an issue that will go away.

Homeowners who want to know whether or not they can take advantage of this financial option should use the equity release calculator at Key Retirement Solutions to find out if they are eligible.

Posted by Christian O'Leary

Because of this, alternatives for retirement saving – such as equity release schemes – may be sought.

Anna Sofat, director of Addidi, noted that alterations seem to be made constantly in the industry and because of this "it's very difficult for individuals to keep abreast of them".

She noted the initial plan introduced back in 2005 to try and simplify the system was the right move, but the measures have not worked.

"A lot of the problems you've got is you look back and you've got various different regimes where you have different rules and those rules wouldn't be fair to change in hindsight," Ms Sofat observed.

Recent research by Badenoch and Clark found that 45 per cent of those questioned would prefer to see a reduction in salary over their pension.

As well as this, some 54 per cent of the respondents added they would be willing to strike if they had to in order to safeguard their benefits package.

If homeowners – aged between 55 and 95 – feel that they will not get enough value from their retirement saving scheme, equity release plans could be used to provide additional finance.

Ms Sofat continued by saying making the whole process easier will encourage employees in their 20s to join a workplace pension.

"Far more younger people are beginning to think about pensions quicker than they used to 15 or 20 years ago," she stated.

Unless the system is simplified, the situation could develop where not enough people are prepared for their post-work life.

Should this be the case, then homeowners may want to seek equity release advice from Key Retirement Solutions to see if this option is one they can benefit from.

Posted by Claire Ford
 

Equity release plans could be one of the options examined by homeowners aged between 55 and 95 who want to free up funds without leaving their current property.

Pensions minister Steve Webb claimed more than a million people are failing to take advantage of pension credits made available to them by the state.

"What we want to do is reform to create a simpler state pension that won't leave people relying on means testing to make ends meet," he said.

Mr Webb stated the new flat-rate pension – which is expected to be introduced at £140 a week – will be "simple", as well as "easy to understand".

"It is this clarity and firm foundation that will help people make decisions about saving for retirement – a crucial step as we prepare to enrol ten million people into workplace savings from 2012," he added.

Laith Khalaf, a pensions analyst at Hargreaves Lansdown, predicted there could still be a long way to go before the coalition government is able to move forward with its plans – as the fine details still need to be worked out before it can be introduced.

Speaking to This is Money, he explained the state needs to ensure it also lives up to its current obligations before taking the next step towards a flat-rate pension.

According to the National Association of Pension Funds (NAPF), some four million people would be rescued from the current "trap" regarding pensions, should the flat-rate be brought in.

Joanne Segars, chief executive at the NAPF, said reform of the system is "overdue".

This comes shortly after a report by the Equity Release Solicitors Alliance (ERSA) found the majority of people do not think a flat-rate pension of £140 a week is going to be enough for them to live on once they have given up working for a living.

Claire Barker, chair of ERSA, said it is "vital" those who are considering their financial options in their later years in life take professional advice while doing so.

One of the choices on offer for homeowners aged between 55 and 95 is using the equity release calculator from Key Retirement Solutions to see how much money they are able to free up while remaining in their current property.

Posted by Christian O'Leary  

This could lead homeowners aged between 55 and 95 to look into ways of boosting their income for the future, with equity release plans perhaps an option worth considering.

Independent research commissioned by the over-50s organisation found the average person is missing out on as much as £7,200 when they come to make a will.

According to the body, this equates to millions of pounds every year across the entire age group and Roger Ramsden, chief executive of Saga Services, said this is a "big number".

Some 90 per cent of older people creating a will employ a solicitor, meaning ten per cent may be making key financial decisions for the future without expert guidance.

"The cost to families if they pay unnecessarily high charges could be astronomical – but it doesn't need to be," said Mr Ramsden.

"Some affairs can be complex and tax and legal complications can lead to problems and stress during what is already a very difficult time.

"We would strongly advise people to get professional help rather than attempting to go it alone where probate is concerned but make sure you don't over-pay."

This could lead older people to looking into equity release schemes as they search for ways in which they can secure their financial future.

Mr Marsden pointed out those who have an estate in the region of £180,000 could easily end up paying a commission fee of around £9,000, which he noted would be enough to pay for a once-in-a-lifetime holiday, a new car, or even a deposit for a house for a family member who is named in the will.

He explained people are able to save hundreds, if not thousands of pounds, simply by carrying out some basic research before they decide what to do about their will.

Last month, it was revealed the money collected through an equity release plan is being used by people for a wide range of products.

Almost one-third went on holiday with their new lump sum of cash, while nearly one-fifth decided to treat themselves to a new car.

This could persuade older homeowners aged between 55 and 95 that it is a good idea to use the equity release calculator from Key Retirement Solutions to see how much income they could free up, while retaining the security of remaining at home.

Posted by Tom Papworth 

Equity release schemes may therefore be considered by homeowners aged between 55 and 95 in order to allow them to retire and enjoy their lives to the full.

According to figures published by the TUC yesterday (June 13th), some 64.9 per cent of people aged between 50 and 65 were in work during December 2010.

This is up from 56.5 per cent of individuals when the research was conducted almost 20 years ago – showing a clear trend towards retirement later in life.

Age and gender: What has changed in the labour market in recent years also shows that during the same period of time, there was an increase from 5.5 per cent to nine per cent in the number of people over 65 who are still working.

TUC general secretary Brendan Barber said: "Older people bring a wealth of skills and experience to the workplace."

He stated the results of the report clearly show this section of society are highly valued among employers and proves the coalition government was right to scrap the default retirement age, a step it took soon after coming into power last May.

"But there is a darker side to people to working beyond their retirement. Low wages and poor pension provision, particularly in the private sector, mean that many people simply cannot afford to retire at 65," said Mr Barber.

This means equity release plans could be examined by those older people who are still in work to see if they are able to free up enough of the income that is still locked into their property to give up work and begin their retirement years.

The TUC general secretary also blamed employers for not doing enough to ensure members of staff have enough money to live on in their retirement, which he said is increasing levels of "pensioner poverty" across the UK.

Pensions expert Dr Ros Altmann recently welcomed an announcement made by the coalition government that loopholes in UK pension protection schemes are to be closed.

She explained she is "so pleased" the Department of Work and Pensions has taken the step as it is "dreadful" for older people facing cuts to their pensions even thought they have already retired from work.

Older people who are aged between 55 and 95 and own their property could look at the equity release calculator from Key Retirement Solutions to see if the financial product is of use to them.

Posted by Alison Stephenson   

Equity release schemes could be an option for homeowners aged between 55 and 95, as they provide the security of staying in the same property, while allowing some of the money that is locked away in the house to be freed up and used.

A new report by PricewaterhouseCoopers (PwC) has suggested that the age people are able to draw a pension could soon be put back to 70.

John Hawksworth, chief economist at PwC, explained there are a number of reasons why this is the case, with public debt needing to be reduced.

"The government has already taken steps to address this problem through reforms to public sector pensions and has started the process of raising the state pension age. But the bigger challenge relates to health and long-term care costs," he said.

Equity release plans could therefore become increasingly important among those who are not sure when they will be able to draw a pension, or when they will quit work.

Mr Hawksmoor added while many other countries are finding themselves in even more financial difficulties than Britain, this does not mean the coalition government should not look for a solution to the issues.

"Current and future UK governments have time to address this but the longer that action is delayed, the higher the eventual costs will be," he commented.

With the average age of people living in the UK rising at the moment due to individuals living longer, it may be the case that many find they need ways to support themselves later in life and pay for likely costs such as long-term care.

Alex Edmans, product manager with Saga's care funding advice centre, recently pointed out those with an income over £23,000 will have to fork out for their own care, while even people under this figure may be asked to contribute to the costs.

This could lead to an increase in the usage of the equity release calculator from Key Retirement Solutions, as people look to plan for their retirement.

Posted by Tom Papworth 

Equity release plans would appear to be a financial product that could benefit from this uncertainty among homeowners aged between 55 and 95, as it allows them to remain secure in their homes, while freeing up some of the income locked away.

Anna Sofat, chief executive officer at financial planning and wealth management service Addidi Wealth, pointed out there have been "many" changes to the system over the course of the last five years and the latest switches could be set to cause more confusion.

She explained the original upgrades made in April 2006 by the Labour administration were aimed at making it simpler to understand, but this has proved to be completely the opposite due to the "continuous" meddling by the state.

"Recent changes will have implications for many more people in the public sector – these are typically people who have not had to worry too much about their pensions, but with the changes to annual allowance and lifetime allowance, they now need to consider these changes," Ms Sofat said.

Shadow pensions minister Rachel Reeves added she was expecting there to be more amendments to the proposed bill before it is ratified.

Speaking to ifaonline.co.uk, she explained only the Labour side of the House of Parliament has come up with any ideas for how the draft could be improved.

"My reading was that the government would come back with amendments to be scrutinised by the committee. I wrote to the [pensions] minister about the issue on June 22nd and am disappointed to have had no reply," commented Ms Reeves.

The ongoing confusion over the changes to the pensions system could see homeowners aged between 55 and 95 use the equity release calculator from Key Retirement Solutions to see if the financial product can be useful for them to boost their bank balances.

Posted by Richard Planner 

Equity release schemes could be worth considering for those aged between 55 and 95, as they allow individuals to free up some income that is locked up in their home, while retaining the freedom and security of being able to stay in the same house.

Many women nearing retirement could be worried by the fact they may not be able to draw their pensions until later, due to a change in the law made by the coalition government.

Dr Ros Altmann, director-general of Saga, stated that it is unfair females are not being given enough time to plan ahead for the shift, noting they are getting around six or seven years to prepare themselves for a one or two-year delay to their pension being paid out.

"The ones who have written to me in desperation are just explaining how it is impossible for them to make up the loss of that money," she said, speaking on this week's FT Money Show.

"These are women who had already accepted a big increase in their state pension age under the 1995 Pensions Act which gave women plenty of notice that their pension age would be rising from 60 to 65 between 2010 and 2020."

Yvonne Goodwin, managing director at Yvonne Goodwin Wealth Management, suggested people try to find a career they enjoy that is sustainable until later in life so they are given the option to work on past the age many will be retiring.

She noted older people often show a willingness to stay in their jobs and have a strong work ethic, which may encourage employers to find opportunities for them.

"It depends how they present themselves and if they come up with a really good CV," said Ms Goodwin.

For those homeowners aged between 55 and 95 who have no intention of working until their later years, using the equity release calculator from Key Retirement Solutions is one way they may be able to plan out their financial situation for the future.

Posted by Tom Papworth