Income in Retirement

Are you like James and Barbara?

James(67) and Barbara(66) have recently retired after working full time. They have two grown-up children, but no grandchildren (yet). They’re looking to continue enjoying the lifestyle they’re used to, including trips to the theatre and dinner with friends. Their combined retirement income is enough to cover the day-to-day essentials, but it isn’t as much as they thought. Thankfully, their home is paid off. 

John, an only child, expects to inherit from his father one day – in the meantime they worry about how they’ll manage. Although they don’t want to start any inheritance tax planning so early in retirement, they do want to be sensible about how they generate additional income. On top of this, they want to contribute towards their daughter’s wedding, but sadly don’t have enough saved to help Amy.

For example, one of Flexible Lifestyle's strategies can: 

1.

Ensure you retain ownership of your property; 

3.

Give a regular monthly income over a fixed term to enable you to make the most of your years in retirement;

5.

Allow you to move house and take the income with you – subject to terms and conditions.

2.

Provide inheritance and negative equity protection offering security for homeowners and their beneficiaries;

4.

Use any inheritance or windfall to make optional partial payments toward the loan, if you wish;

6.

Provide an initial lump sum for you to fulfill an ambition or help out Amy with the wedding!;

You need to bear in mind if James receives his inheritance during the fixed term, they can choose to stop taking the monthly income without incurring a fee. However, once it’s stopped, it can’t be restarted. The rules around equity release products are complicated, so you should always obtain professional advice.​

Equity release may impact the size of your estate and it could affect your entitlement to current and future means-tested benefits.

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