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Sunday, 20 May 2018

An interesting option on retirement

Or, perhaps, well after retirement when you are around 75.

It will also depend, of course, on whether you have children, whether the children are well off, whether they are still loving and supportive if not well off.

And whether, of course, you have invested wisely in pensions during your working life.

This article will assume that you haven't an adequate pension, and if you have children, they are either well off, or have neglected you.

First of all, if you need to go into a nursing home, and you can't afford a private one, there are certain restrictions as you can read in this Daily Telegraph article.

Of course, you can always sell your home and go on a "round the world" luxury holiday and live like a prince until it is all gone, and throw yourself at the mercy of the local council. You need to have less than £118,000 left if you've read the Daily Telegraph article in the above link.

Another way is to consider"Equity Release". This is where you sell your house to an insurance company. It is very difficult to say how much you will get as it depends on the value of your house, the area it is in, whether it is likely to go up in value and other criteria.

For example, if you release £50,000 now from a home worth £250,000 and the loan runs for 15 years, you will build up a debt of £123,000. If we assume that house prices rise at 5pc a year, the value will be £528,000 in 15 years' time. So you will have £405,000 remaining to bequeath.

However, this will still be a lot over the £118,000 mentioned earlier - so an outright sale and a very, very long around the world travel holiday might be your best bet.

But only if you don't have loving, and supportive children.


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