Retired Homeowners Could Earn More With an Equity Release Scheme, Reports Bower

BRENTWOOD, England, April 3, 2012 /PRNewswire/ --

With a fall in annuity rates and increased taxation following George Osborne's budget, Bower state that equity release enables retired homeowners to supplement their incomes.

Bower Retirement Services, the specialist adviser on equity release schemes, has warned that falling rates for annuities is increasing the financial cost to thousands of pensioners. Rates have plummeted so far that pensioners are even choosing to opt out of an annuity and are considering alternative options, such as an unsecured pension and income drawdown.

This situation has not been helped by George Osborne's latest budget that has increased taxation on private sector pensions. According to the Daily Telegraph, approximately 4.5 million future pensioners will have their yearly income reduced by around £250 a year.

The government could have offset this reduction by following Saga's advice to allow older savers to put their full annual ISA allowance into cash. Under the current ISA regulations, individuals can only put half of their money into tax-free cash accounts, meaning that those who cannot afford to gamble on the stock market cannot use their full ISA Allowance.  

At the very minimum, it could have been advisable for the government to allow older people to hold their full annual ISA allowance in cash. This would help pensioners to receive more of their savings interest tax free.

But for those who may be struggling with future retirement planning, an equity release scheme arranged via Bower can provide an excellent opportunity for the elderly to supplement their incomes.

According to Bower, there are two types of equity release schemes that will allow you to raise money from your property as either a lump sum or regular payment. Firstly, there is the lifetime mortgage, which involves taking out a loan secured against your home, or there is a home revision plan that allows you to sell all, or part, of the ownership of your home.

After gaining an equity release, the extra cash can be used to boost your retirement income, or purchase a holiday home or home-improvements. But most importantly, the additional income will allow you to enjoy a retirement without financial concerns!

So if you are over 55 and would like to know if are able to qualify for an equity release scheme via Bower, use the free equity release calculator to find out how much additional money you may be able to receive.

About Bower Retirement Services

Bower Retirement Services are an award-winning specialist UK equity release advice company. Fully regulated and authorised by the Financial Services Authority (FSA) to provide advice on equity release products from the whole market. Winners at the 2009 and 2011 Equity Release Awards, with Bower customers are guaranteed to receive the very best equity release advice.

SOURCE BRS Equity