Money

The current economic climate of record low interest rates and soaring inflation means that many over 55s find themselves entering retirement with a lower level of income than anticipated or planned, or even worse find themselves out of pocket. 

Set against a backdrop of increasing life expectancy the time spent in retirement is likely to be longer than ever before and will add further pressure to later life income.

Age UK Enterprises’ research* has found that many over 55s are not making the most of savings and investments which could help maximise their retirement income. While three in four (76%) over 55s have some assets, savings or investments, only two in five (38%) say these are specifically in place to provide additional income in retirement. Worryingly, one fifth of those with assets or savings admit that they have no idea what they are worth. Increasing awareness of how income could be released from such assets, coupled with support and advice could help more people enjoy a happier and more comfortable retirement.

Get to know what help is available

All these factors combined make it vital that those in later life have access to appropriate products and services, alongside quality information and guidance to make informed financial decisions. At the same time, this also highlights that a one size fits all strategy will simply not work and the financial services industry has to do more to improve the financial options available to those in later life. Developing innovative and tailored products for this stage of life will go some way to allow those in later life to realise their retirement aspirations. Age UK Enterprises offers a full range of products and services designed specifically with the needs of those in later life at their core.

Some of the products available to help those in later life to access the funds they need include Equity Release, which is an option for homeowners. While not right for everyone, it is a means of releasing some of the value of what is often individuals’ largest asset, their house, without the need to move. Equity Release is one way of ending the scenario of being asset rich but cash poor in later years. There are many plans available and careful selection is essential to ensure that the plan chosen fully meets individual needs. The Age UK Equity Release Advice Service offers an advisory service that allows individuals to speak to someone over the phone or in person and offers a means tested benefits assessment with any product recommendation based on an individual’s circumstances.

Shop around on the open market

An often overlooked element of later life planning is the annuity rate that individuals secure when turning their pension savings into a retirement income - a once in a lifetime purchase that cannot be reversed. There is much variance across the market and it is vital to offer support so that individuals secure the best possible rate. This could significantly improve retirement income. Shopping around on the open market, rather than just accepting what their pension provider offers, will help to ensure retirees achieve the best possible rate that fully reflects their circumstances including any enhancements due to ongoing health issues and lifestyle factors. It is essential that quality advice and guidance are available to those in later life when planning for retirement to highlight the choices available to them.

The financial services industry must put the diverse and changing financial needs of those in later life at the heart of product design and service delivery. Introducing choice and support can only improve later life planning and help individuals maximise their income in retirement securing the best value and quality products and services to ease later years.

The Age UK Equity Release Advice Service offers an advisory service which has been designed specifically to help and support people in later life to maximise income in retirement. It includes a means tested benefits assessment and any product recommendation would be based on an individual’s circumstances. The Age UK Enterprises Equity Release Advice Service is provided by Just Retirement Solutions Ltd. Customers who would like more information can call 0845 600 9275 or visit  http://www.ageuk.org.uk/buy/equity-release

The Age UK Annuity Service offers a range of competitive annuity quotes and supports consumers in accessing the open market when purchasing the product. The Age UK Annuity Service is provided by Premier Retirement Services, a division of JLT Benefit Solutions Ltd. Customers who would like more information can call 0845 600 9268 or visit www.ageuk.org.uk/buy/annuity-service.

http://www.ageuk.org.uk/buy/annuity-service/

* Research commissioned on behalf of Age UK Enterprises. All figures, unless otherwise stated, are from TNS Research International. Total sample size was 1249 adults aged 55+. Fieldwork was undertaken 14th to 20th September 2011. Figures were weighted to be nationally representative of the GB population