If you have taken early ill health retirement it may be that you are not as financially comfortable as you would have been if you had worked until retirement age. You may therefore wish to release a larger portion of the equity within your home so that you can use the equity to increase your lifestyle or pay off other loans to therefore lower your financial commitments.
Funding Retirement without Full Benefits
When you have retired early due to ill health you may not have the full pension you were hoping for. However, you do have options which are important to research. Consider some of the following in terms of gaining financial stability as well as to ease some of the worry you feel.
Retirement is a time for financial freedom and equity release may be the best option to achieve this freedom in your circumstances. It may also be possible to access your pension at a younger age and this option should also be fully researched as it may take off some of the immediate strain. If you cannot access a full enough pension at your younger age consider an alternative.
Some equity release providers understand the needs of a retiree with health issues may be different to those in full health and therefore offer larger lump sums to be paid out. Specific lifetime mortgages are also offered for people with ill health.
Lifetime Mortgage Helps Release Funds
Regardless of your reasons for wanting a lump sum payment out of your house it is still important to thoroughly research all available options and also obtain a financial forecast for your equity release scheme. While an ill health retirement seems bleak at the moment, you do have more than one option to funding your retirement and making your last several years comfortable.
The ill health lifetime mortgage is just one product. It provides a larger lump sum than other equity releases, but maybe you do not need such a huge amount. You never have to take the maximum amount offered in a lifetime mortgage. Instead, you can choose what works best for you with regard to the lump sum.
While your ill health might be beneficial, it is also a good idea to research the other products. Perhaps you would be more comfortable with a drawdown account. You can take money as you need it and later on if you need more you can refinance for more. Perhaps you are worried about your partner needing more funds later in life? This is why examining the equity release is important based on your ill health plus your partner’s situation.
Getting Proper Advice
Do not allow yourself to be pressurised into making a poor decision by immediate financial concerns of ill-health. Seek independent financial advice to ensure that you have chosen the best equity release scheme and not just the one that seems most appealing in the here and now.
As you choose an equity release adviser to help you it is important to make certain they are qualified and independent. There are tied brokers, meaning they work for one company and are sales representatives. They are not going to volunteer information nor will they steer you towards a different product.
An independent adviser is someone who will definitely provide all information and look out for what is best for you. They can compare lifetime mortgages and show case what seems the most likely option for your maximum amount needs.
Qualifications for Ill Health
Since ill heath is the operative word here it stands to reason you would like to know what will qualify. There are some specific situations that will help you obtain a larger lump sum than healthy retirees.
• You or the person with ill health needs to be the youngest in your partnership.
• The person has to be on the property title as someone who can take out a loan against the equity.
• The person must have a qualifying health issue or issues that would allow for a larger lump sum to be released. Numerous situations apply including if you have ever smoked, have diabetes, heart disease, multiple sclerosis or other health issues.
For an ill health retirement you can live comfortably. All it takes is a little research, consideration, and choosing the lifetime mortgage that best fits the entire situation. Do not let someone try to sell you an equity release until you are ready. You can always go with a different company or continue your research until you are comfortable.