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

With many individuals likely to see their retirement income cut as a result of the changes being made by the Conservative-Liberal Democrat alliance, it could mean products such as lifetime mortgages are set for a boost in popularity in the coming months.

RPI to CPI indexation

Deputy director of the IFS and co-author of the report Carl Emmerson stated the decisions to switch from RPI to CPI indexation of pension benefits will reduce the generosity and therefore the cost of pension schemes to the taxpayer in the long-term.

He said: "But the consequence of the long-drawn-out negotiations over the latest reform appears to be little or no long-term saving to the taxpayer or reduction in generosity, on average, of pensions for public service workers."

Locations vary payouts

Wenchao Jin, a research economist at the IFS and co-author of the chapter, added evidence shows pensions across the UK may vary from location to location, pointing out more generous pay awards can be found in places such as the south-east, with lower settlements given to individuals in Wales and Northern Ireland.

Homeowners aged between 55 and 95 living in Northern Ireland and Wales may therefore wish to assess their options, with equity release schemes one of the ways they could be able to boost their income by unlocking cash from the value of their home.

Last month, the coalition government launched a new campaign with the aim of encouraging people to put more money away for their retirement.

It was announced by the Department of Work and Pensions that millions of pounds are also being spent on a drive to improve awareness of the upcoming auto-enrolment scheme that will see employers begin to automatically make pension contributions for their members of staff.

But for those already in their retirement, using the equity release calculator from Key Retirement Solutions may be a better way to secure their finances for their later years.

Posted by Tom Papworth

According to a report by the Daily Telegraph, this means many people will try to avoid buying a conventional annuity at the moment, due to the fact they are not offering good value for money.

Fixed-term annuities

However, the news provider pointed out fixed-term products could be set for a boost in popularity in the coming years, as they offer people who are new to retirement the chance to "test drive" the product for five or ten years in order to see if it is the right choice for them.

"A far greater proportion of pensioners suffer ill health from 70 onwards, although many need to buy an annuity before this. This offers a short-term solution, so people can reassess options at a later date," it was pointed out by the newspaper.

However, this may not be the best choice if rates continue to fall over the course of the next few years, as individuals may find they are locking into the product for ten-year terms with an ever-declining total of funds for their retirement.

Investment-backed annuities

Another of the options available to people coming up to the age they want to give up working are investment-backed products, the benefits of which include the chance for the value of the money to go up and they guarantee a minimum income.

"These are riskier than conventional annuities but are not seen as high risk as income-drawdown plans, as a minimum income stream is guaranteed," the newspaper noted, adding the majority of these types of annuities will pay a lower starting income than a more conventional style of annuity, but they should be able to grow over time.

Keith Churchouse, director of independent financial advisers and chartered financial planners Chapters Financial Limited, recently pointed out rates have been falling steadily for the last six months, which means many older people are realising they will have less money for their retirement than they had initially anticipated.

Posted by David Hancock

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

According to the Department of Work and Pensions, millions of pounds are being spent on the drive to persuade individuals of the importance of saving for their retirement.

It comes as part of the build-up to the introduction of the auto-enrolment scheme that will see companies automatically pay pensions contributions for their members of staff.

Explanation provided

The fundamentals of the reform are to be explained through the campaign, which will direct individuals to the Directgov website where they can learn more about the programme.

But for those who are already nearing their retirement, this could come too late if they have been unable to put enough money away for their later years, with homeowners aged between 55 and 95 likely to be considering products such as lifetime mortgages in order to boost their situation.

One of the benefits of equity release schemes is that people do not have to sell their house – which may be full of decades worth of memories – and go through the stressful process of moving to another residence.

Employers and individuals

Pensions minister Steve Webb stated it is important both employers and individuals are aware of the changes to the pensions system, which is why the coalition government has launched the new campaign, which will take place over the course of the next few months.

He said: "Automatic enrolment will transform this country, putting an end to the decline in pension saving, and setting millions on course for a more prosperous retirement."

Writing for the Eastern Daily Press earlier in the month, Mr Webb argued both low and middle-income workers are to be among those to benefit from the pensions reform.

For those who want to unlock some of the money from the value of their property, using the equity release calculator from Key Retirement Solutions can be a good first step.

Posted by Tom Papworth

Who qualifies for the Warm Home Discount?

You could qualify for the Warm Home Discount Scheme if – on the qualifying date of 11 September 2011 – all of the below apply:

• You got only the Guarantee Credit element of Pension Credit (no Savings Credit).
• Your name or your partner’s name was on your electricity bill.
• Your electricity account was with one of the energy suppliers participating in this scheme. (list of energy providers involved in this scheme can be found below)

If you match all of the criteria above then you should not need to do anything now to get your rebate. If you don’t qualify because you currently receive the Savings Credit element of Pensions Credit, it may be the case that you fit into ‘broader group’, a category that was set up to help more vulnerable groups who need extra support. To see whether you qualify you will need to speak to your energy supplier.

When should you expect to see your rebate?

Energy rebates for 2011/12 will be paid during the winter season. If you have qualified for this scheme you will receive a letter stating this. If you were on the Guarantee Credit element of Pension Credit on the qualifying date (11 September 2011) you should expect to receive a letter. This is expected to arrive between mid November 2011 and the end of February 2012.

Some letters may ask you to provide more information in order for you to receive this rebate. Make sure that you get this letter in by 28th March 2012. All the information you will need will be on your electricity bill.

How does it work?

The Department for Work and Pensions (DWP) as well as participating electricity suppliers will share some limited information about their customers. This information will allow participating electricity providers to provide customers with an automatic energy rebate to those who qualify.

This Warm Home Discount Scheme will run across four years from winter 2011/12. All rebates will be paid and funded by participating electricity suppliers.

Energy suppliers who are participating in this scheme

Electricity suppliers involved are; Atlantic, British Gas, EDF Energy, E.ON, Equipower, Equigas, Manweb, M&S Energy, npower, Sainsbury’s Energy, Scottish Gas, Scottish Hydro, Scottish Power, Southern Electric, SSE, Swalec and Utility Warehouse.

If you need more information about this scheme call the Warm Home Discount Helpline on 0845 603 9439. Their lines are open 8am – 6pm, Monday – Friday.

Could Key help you with your utility bills?

Did you know that 16 per cent of our customers released cash through an equity release plan to help with their regular bills?*

If you need extra cash to help you live more comfortably in retirement, why not speak to Key Retirement Solutions today? We offer independent equity release advice to UK customers who are looking to release cash from their home.

You can book your appointment today by completing the form or calling 0800 531 6027. At this free, no-obligation initial appointment you can find out more about how equity release works, learn more about the different schemes, see our exclusive offers we have secured from leading providers and find out how the value of your estate will be reduced and whether your entitlement to state benefits may be affected.

That extra bit of cash may just make your life that little bit easier and stress-free. Call on 0800 531 6027. Lines are open Monday – Friday 9am – 5.30pm.

If you are considering equity release, you should read through is it right for you, carefully.

*Key Retirement Solutions Review 2011.

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

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.

Annuity rates hit their lowest level since 1990 during August last year, leaving many people wondering how much further their retirement income could be set to fall.

According to a report by FTAdviser, this meant annuity incomes fell by more than £300 a year, which could have a major impact on the finances of those with the product.

Volatility

An end to the volatility appears to be some way off at the present time, which may persuade those thinking of buying an annuity to hunt for the best possible rates.

Equity prices continue to be unpredictable, it was noted by the news provider, while bond yields are also up and down.

"One of the issues with the current way in which investors convert pension pots into income is that annuities have been commoditised," it was pointed out in the report.

Differentiating between products

While investors are being informed of the importance of shopping around for the best annuity rates, they are doing so without any "enthusiasm" and they lack the knowledge of how to differentiate between the different products on the market regarding their quality.

Last month, research by Standard Life indicated that there is a lack of awareness among the general public regarding what an annuity actually is, with 48 per cent of the respondents to a poll by the organisation admitting they do not know what one does.

Men were more likely to understand what the financial product is for, as 60 per cent of males who took part in the survey claimed to grasp the concept of annuities, compared with only 45 per cent of the women.

John Lawson, head of pensions policy at Standard Life, stated knowledge of financial options is more important than ever due to the fact individuals are living for longer.

Posted by Alison Stephenson