After working hard for decades on end, raising a family, and giving back to the community, our senior citizens deserve to sail off into the sunset and enjoy their golden years. The current cultural zeitgeist has embraced this concept, as the search terms “assisted living” and “senior living” have skyrocketed in recent years, tripling over the past decade relative to other care options. However, after accounting for the costs associated with retirement homes, medical care, travel, entertainment, and life in general, the essence of a relaxing retirement plan has been strained by exorbitant budgetary concerns. After all, financial consultants around the world have deemed it necessary to have approximately 50,000 pounds of income during each year of retirement, a number that causes many retirees to shudder in fear of what the future holds.
However, given the recent advancements in the financial sector, people now have the ability to pull wealth from their home’s inherent value in a safe way, a concept that is often referred to as an equity release. This article will dive headfirst into the history of this financial tool, how far it has come since its inception during the 1980s, and how you can use it to bolster your retirement years.
A Dark History with a Bright Future
Before our modern rules, codifications, and stipulations came to be, the global financial markets used to represent a dark, scary sector for innocent consumers and investors. Much of this fear stemmed from a slew of scandalous home income plans that were distributed in the late-80s, most of which left thousands of elderly people struggling under inordinate mountains of rising debt. This indignity, which was also referred to as the “Rainbow Scheme,” was facilitated in large part by a now-defunct financial adviser, but the pain and humiliation lasted for a few decades thereafter, until the global financial community came together to create a safer, more secure way for seniors to obtain financial leniency from their mortgages. Prior to instituting new guidelines and consumer-protection measures, regulatory agencies also made a point of repaying over 55 million pounds to all affected customers, which helped the equity release markets reassert themselves as viable financial vehicles.
With today’s modern form of regulated, flexible equity release plans, also called lifetime mortgages, people can access their home’s inherent wealth without having to sell the property, give up ownership, or drown in rising interest rates. To boot, many of the most reputable lending agencies now feature a resourceful home equity release calculator, which allows you to easily see exactly what you qualify for at any given time. If you’d like to turn the equity built up in your home into tax-free cash without having to downsize or alter your life, look no further than a trustworthy equity release plan.
Financial Freedom Is a Simple Consultation Away
Whereas the Rainbow Scheme of the ’80s involved soaring interest rates, collapsing stock markets, and falling home prices, today’s equity release market features steady rates, thriving stock markets, and perpetually rising housing values. In our age of information, finding a solid home equity release plan is easier than ever before and it actually features a host of safeguards and protections against the detriments of years past. The money you receive is essentially yours to spend as you wish, because the equity released from your home is your asset and no one else’s.
Regardless of your monthly bills, retirement plans, and current living situation, being able to access the tremendous value within your home is priceless in this day and age, so start researching your options as soon as possible.