As we hopefully celebrate a few gold medals at the 2012 Olympics, baby boomers will also be celebrating turning 65 years old in record numbers – in fact, according to Credit Action, around 800,000 in total.
But, as this historic year approaches, not all these pre-retirees are looking forward to retirement age and the possibility of having to juggle a pension and debt repayments.
It is an unfortunate statistic but, as highlighted in a report from Age UK, more than a third of equity release customers have used the cash to help clear their debts. If you are thinking about this solution to clear your debts before or during retirement, you must consult an Independent Financial Adviser to ensure you understand the full implications.
If you do have a substantial amount of debt, there are some things you should do before you consider equity release:
- Check to ensure you are receiving the correct personal tax allowance
- Budget carefully – if you have more money going out than coming in, you’ll need to make cut backs
- Pay monthly for your utilities so you’re not faced with large quarterly or annual bills and ensure you’re getting the best deal by using price comparison websites e.g. uSwitch.com
- Consider downsizing your home which might free up some cash to help you pay off your debts
- If you live in a larger home and your children have flown the nest, why not investigate the possibility of renting out a room to increase your monthly income
If you are struggling with debts, contact us today. We may be able to help you.