News Review: Equity Release TMW Residential. Heating or eating
by Andrea Rozario, director general, SHIP
in early June, the institute for Fiscal Studies released two papers that revealed that the poorest pensioners were so financially stretched that they felt forced to choose between spending on food
and heating. as a result, many of them opted for the latter option and reduced their spending on food. Being forced to choose between heating and eating is not something that anyone should face – especially in an affluent country like the uK – and the benefits system is designed to avoid this. However, with a rapidly ageing population – the
government is increasingly looking for people to self-finance so in the future it will only be the poorest pensioners who receive this type of helping hand. the remainder will need to consider how they can use their assets to improve their lifestyle and equity release provides a real solution to this problem. We need to work on educating consumers about their options as – to be frank – many still see equity release as the last resort rather than a real and valuable part of their decumulation choices. not that many people have a decumulation strategy as it is generally saving or accumulating that appears to be at the front of most people’s mind – how to plan for later life and possible future costs doesn’t receive nearly enough attention as it should. HSBc’s Future of Retirement Report The Power of Planning introduced us to the uK’s “ostrich generation” people who are putting their heads in the sand when faced with planning for retirement. one of the difficulties is that it can be difficult for the younger generations - people in their twenties and thirties - to imagine that far ahead. indeed, research carried out by SHiP over the past month
found a significant number are failing to plan for retirement. Some 15% have not even started saving, 13% have worried about what they will do but not actually made any plans, and 12% will do something “when they have time”. early planning is invaluable when it comes to funding retirement. the sooner a person starts to plan for it, the more likely they are to be prepared for unforeseen expenses or whatever might come their way. However for those who no longer have that as an option
there are alternatives, such as equity release, downsizing, or working beyond the traditional age of retirement – all of which can make life a little bit more comfortable for those who need a little support, but clearly this will depend on their individual circumstances, and what is right for one person is not necessarily right for another.
Proud to be part of
Exclusive products for your eyes only.
Bonding with brokers? Just common sense.
For more information about TMW Residential products ask your local BDM or visit
www.themortgageworks.co.uk
The Mortgage Works (UK) plc is a wholly owned subsidiary of Nationwide Building Society and is authorised and regulated by the Financial Services Authority under registration number 189623. Most buy-to-let mortgages are not regulated by the Financial Services Authority. Registered Offi ce: Nationwide House, Pipers Way, Swindon SN38 1NW. Registered in England. Company Registration Number 2222856. Applications are required. Standard terms & conditions available on request.
mortgage introducer JULY 2011 15
T606_87x245_hpv_v1.indd 1 04/07/2011 17:17
T606 06/2011 v1
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64