NOW’S THE TIME TO SORT OUT YOUR FINANCES

January is the time of year for counting the cost of Christmas and planning for the expenses ahead.

But for the over 55s, the options available for raising extra money to cover the cost of living, mortgage payments, unexpected bills and home improvements are restricted.

With an ageing population, this goes some way to explaining the increasing take-up of equity release products as a means of supplementing our income in our retirement years.

More homeowners over the age of 55 than ever before are choosing to free up money that has been tied into their properties to support themselves and their families.

Equity release is available to those aged between 55 and 95, who own a property worth at least £60,000, with the amount of tax-free money released varying depending on factors such as your age and the value of your property.

Receiving a cash lump sum from an equity release plan will reduce the value of your estate are calling for more financial products of this kind to be made available.

Falling equity release rates are making this type of scheme increasingly affordable for homeowners looking to unlock wealth from their properties, something Dean Mirfin, technical director at Keyretirement.com, says is likely to continue.

He said: “By taking advantage of the tax-free benefits of equity release, those over 55 can control how the money is used.

“Equity release offers such a diverse capability to meet income and capital needs in retirement that we can only see its popularity increasing further still.

“Scottish homeowners continue to look to improve their financial wellbeing and we expect to see the lives of many in Scotland being enhanced further still throughout the coming years.

“Property, for many, could be the answer to many of their financial needs in retirement when faced with pension and savings shortfalls.”