Later-life financial options explained
There is more than one way to approach later-life finances. The right option depends on your home, income, age, health and long-term plans.
This guide explains the main later life options available in the UK, including equity release and alternatives, to help you understand how they work before deciding whether to speak to a regulated advisor.
What are later-life financial options?
Later-life financial options are ways homeowners and retirees may use their assets, income, or housing to support their needs in later life.
Some options involve borrowing against a property, while others focus on changing housing arrangements or using existing savings. Understanding the differences between these approaches can help clarify which options may be worth exploring.
Your main later-life options
The main later-life options available to homeowners typically fall into the following categories. Each works differently and carries its own benefits and considerations.
Equity Release
Allows homeowners aged 55 or over to access money from their home while continuing to live there. It can be suitable in some circumstances, but its a long-term decision that may affect inheritance.
Retirement Interest-Only Mortgages
A mortgage designed for older borrower where you make monthly interest payments. The loan is typically repaid later in life.
Downsizing
Selling your current home and moving to a smaller or less expensive property can release money and reduce ongoing costs.
Using Savings or Pensions
In some situations, using existing savings or pension income may be an alternative to borrowing, depending on your wider financial position.
How later-life options differ
Later-life options differ in how they affect your home, income and long-term finances. Some approaches allow you to remain in your home without making monthly repayments, while others require ongoing payments or involve moving to a different property.
Understanding these differences can help you compare options more clearly before considering whether professional advice is appropriate.
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Whether borrowing is involved
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Whether monthly repayments are required
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Impact on inheritance
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Flexibility over time
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Long-term commitment
Using savings or pension income
In some situations, homeowners may consider using existing savings or pension income to support later-life needs, rather than borrowing against their property or moving home.
This approach may be suitable for people who have accessible savings, defined contribution pension funds, or sufficient retirement income to meet their needs. Using savings or pensions can avoid taking on new borrowing, but it may also reduce the level of funds available later in life.
Deciding whether to use savings or pension income depends on factors such as long-term income needs, tax considerations, life expectancy and whether funds may be needed for future care or unexpected costs.
Which option may be right for you?
There is no single "best" later-life option. What may be suitable depends on factors such as your age, income ,property value, health, family situation and future plans.
Understanding your options first can help you decide whether speaking to a regulated adviser is the right next step.
Do I need to speak to a financial adviser?
Some later-life options, such as equity release and certain mortgages, require advice from an FCA-regulated adviser before proceeding. Other options, such as downsizing or using savings, do not require regulated advice but may still benefit from professional guidance.
Learning about your options first can help you decide whether speaking to a regulated adviser is the right next step for you.
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