‘I want my grandchildren and great grandchildren to have the money now, when they need it”
How Janet used equity release to help her grandchildren now
After 32 years of teaching in primary and secondary schools, you might think you’d have had your fill of children, But for Janet Donaldson, retirement meant delighting in more time to spend with her grandchildren and great-grandchildren. ‘The two girls love dancing and my great-grandson does karate,’ says the 81-year-old. ‘My grandson and his partner are such fantastic parents – they put all their time and energy into their kids, and it’s lovely to be able to help.’
Janet has been happy to give the young family financial support – especially in times of difficulty – and she says that having access to cash has made this possible.
‘Their gas boiler broke when my grandson’s partner was a week from giving birth, and she desperately wanted to have her baby at home,’ she says. ‘Access to extra funds meant that I could help out, and she had him at home.
‘I’ve also been able to help my granddaughter with her first child – buying furniture and the things she needs. I’d rather they had the money now when they need it.’
But things weren’t always like this. Janet retired as a full-time teacher at the age of 60, but chose to keep working part-time as a supply teacher for the next five years. When she stopped work at the age of 65, she chose to use her pension savings and endowment to pay off her mortgage so that she was financially secure in her home.
‘But it left me with an empty pot,’ says Janet. ‘I found myself in a situation where I was sitting on more than £300,000 of property, mortgage-free, but I was still frightened to death, should anything actually happen, as I didn’t know where the money would come from.’
During her working life, Janet had always taken out personal loans to pay for home improvements or
unexpected repairs that needed doing around the house. ‘I would take out a short-term loan and pay it back over three years,’ she explains.
‘But they don’t usually give personal loans to the over-eighties. There are opportunities for older people to earn money, but I don’t see why I should. I’ve just never had any real money behind me,’ she says.
It was around this time that Janet began to consider whether she could use some of the money tied up in her home to supplement her retirement finances and allow access to cash, should it be needed in the future.
‘I thought of equity release for about two years. I talked it over with my three daughters, and went from there,’ she says. ‘When I read up on it, Key seemed to be a good company, so I got in touch.’
Janet met her adviser in her home – it was before social distancing came in – and he helped her consider her options and explained that there was no pressure to go ahead.
‘I didn’t have any great worries – I just wanted to ensure that when the plan comes to an end, there would still be equity in my home to leave to my children.’
With her lifetime mortgage, Janet agreed to ring-fence a proportion of her home’s future value using inheritance protection. This means she’s safe in the knowledge that as she didn’t release the maximum available, there will be an inheritance to pass on to her loved ones.
‘Equity release has absolutely given me peace of mind,’ she explains. ‘I don’t need to worry any more. If the washing machine breaks down – I can afford to replace it.’
‘For me, downsizing wasn’t an option,’ says Janet. ‘Although mine is a three-bed family home, it’s not a big one. It’s just right for me. The garden is manageable and low maintenance, and with the great-grandchildren, it’s nice to have a little extra space.’
It’s not just her family who have seen the benefit of the equity release money. Janet has had a new kitchen installed, new French doors, windows and a new front door put in – ‘It wasn’t secure at all before,’ she says.
‘I’ve also had a couple of holidays – I went to visit my cousin in New Zealand for a month, and to Italy last year. I’m hoping to keep as active as possible for as long as possible, so having access to a drawdown facility means I can look into stairlifts and future-proofing the house, should the time come.’
That time is some way off for Janet. ‘I thoroughly enjoyed teaching and got so much from it. When I retired, I did miss the social side of it. However, after a couple of months, I started to do things for myself. I ended up being out every day, always with something to do.
‘I thought, I can’t sit around – I’ve never been one to sit around. Being a teacher, your life is guided by bells – there are more bells than Esmeralda! – so it was a question of getting my life organised. I walk with the ramblers, go swimming twice a week and go line dancing twice a week, too.’
‘I’d certainly recommend Key to others and have done already! I told a friend, and they went ahead with equity release and they’re so happy, too!’
Call Key free on 0800 953 3879 to find out more.