Unlocking cash in later life

MANY PEOPLE approach retirement without saving the money they need to pay everyday bills, plus a bit left over to enjoy themselves.

Worse, growing numbers still haven’t cleared mortgages, credit cards and personal loans, but it gets hard to service monthly debt repayments once you stop work. There are all sorts of reasons why people fall short. Divorce, illness and redundancy can destroy the best-laid plans.

So can sudden shocks, such as the pandemic. Many over-50s now face the prospect of early retirement, after losing their jobs in the lockdowns.

Homeowners are in a stronger position as there are ways of generating money from their property, such as taking out an equity release scheme or retirement interest-only mortgage.

Downsizing to a smaller property is another option.

Equity release

Millions of retired people are living in properties worth hundreds of thousands of pounds, yet at the same time are short of cash. Equity release schemes allow homeowners