Retirement Money News

Consumers borrowed £1.6 billion through equity release between April and June this year, according to the latest figures from the Equity Release Council (ERC). This equates to £700 million more than what was borrowed in the first three months of the year.

Consumers borrowed £1.6 billion through equity release between April and June this year, according to the latest figures from the Equity Release Council (ERC).

The average lifetime mortgage, otherwise known as an equity release product, now stands at 5.63%, the highest it has been since August 2016. Rising in tandem with these rates are the number of people looking to use some form of equity release. Figures from the Equity Release Council for this year’s first quarter saw customers unlock £1.53 billion of property wealth in total. This was up 14% from the fourth quarter of 2021 – previously the busiest quarter on record.

The average lifetime mortgage, otherwise known as an equity release product, now stands at 5.63%, the highest it has been since August 2016.

Bad news for potential buyers as the average house price rises rose by £27,000 last year. The latest UK House Price Index recorded average house prices up 10.8% in the year to December 2021. According to data from the Land Registry, it is the biggest gain in a calendar year since 2002.

Bad news for potential buyers as the average house price rises rose by £27,000 last year.

The equity release market saw a return to growth in 2021. Record amounts of property wealth were accessed by customers, according to industry body the Equity Release Council, which says the market rose by 24.8% last year, to a total of £4.8 billion.

The equity release market saw a return to growth in 2021.

It has become common for aspiring homeowners to turn to the bank of mum and dad to realise their dream of owning their first home

It has become common for aspiring homeowners to turn to the bank of mum and dad to realise their dream of owning their first home

The pandemic has resulted in many households facing financial struggles over the past 12 months and older homeowners may be considering tapping into their pension pot early or releasing equity from their property to see them, or help loved ones, through the current economic uncertainty

The pandemic has resulted in many households facing financial struggles over the past 12 months

UK Finance predicted that the number of interest-only mortgages set to mature during 2020 would be 54,000

UK Finance predicted that the number of interest-only mortgages set to mature during 2020 would be 54,000

Mortgage borrowers financially struggling due to the Coronavirus pandemic and considering switching to an interest-only mortgage will find that the majority of deals offer an interest-only repayment option

Mortgage borrowers switching to an interest-only mortgage will find that the majority of deals offer an interest-only repayment option

As the equity release market continues to evolve alongside people’s need for extra cash when they approach or are in retirement, it has not been totally immune from the rate rises that the residential mortgage market has witnessed of late.

As the equity release market continues to evolve alongside people’s need for extra cash when they approach or are in retirement, it has not been totally...

2017 saw equity release grow considerably once again, attracting twice as many new customers compared to five years earlier. The second half of 2017 alone saw 35,540 customers, with more new plans agreed in those six months than in the whole of 2012.

2017 saw equity release grow considerably once again, attracting twice as many new customers compared to five years earlier. The second half of 2017 alone...

Equity release is becoming increasingly popular as a way to boost retirement income, and the sector is booming – not only did 2016 hit record levels of lending , but 2017 could follow suit, with annual growth in the sector hitting an all-time high.

Equity release is becoming increasingly popular as a way to boost retirement income, and the sector is booming – not only did 2016 hit record levels of...

The equity release market is continuing to evolve, and thanks to rising competition, now could be a great time to get on board, with equity release rates falling to record lows and the highest number of lifetime mortgages available in years.

The equity release market is continuing to evolve, and thanks to rising competition, now could be a great time to get on board, with equity release rates...

Despite its popularity, the Lifetime ISA has received criticism for imposing harsh withdrawal penalties and not keeping up with the current economic climate.

Despite its popularity, the Lifetime ISA has received criticism for imposing harsh withdrawal penalties and not keeping up with the current economic climate.

With Chancellor of the Exchequer, Rachel Reeves, delivering a Labour Government's first Budget in almost 15 years, find out the potential impact on savers, mortgage borrowers and pensioners.

With Chancellor of the Exchequer, Rachel Reeves, delivering a Labour Government's first Budget in almost 15 years, find out the impact on your finances.

The Labour Party committed to protecting the Triple Lock in its manifesto, but how long is it sustainable?

The Labour Party committed to protecting the Triple Lock in its manifesto, but how long is it sustainable?

With the UK General Election taking place later this week (Thursday 4 July), we examine how some of the main parties’ policies could affect your personal finances if they were to form the next Government.

Find out what the Conservative and Labour Parties have planned for your taxes, savings and pensions.

When measured against both state and private pension averages around Europe, the UK often falls far down the list of the most well-off countries. Keep reading to find out three financial aspects that could affect your later-life income and how to overcome them, plus three unmissable financial opportunities to prioritise in retirement.

Find out three financial aspects that could affect your later-life income and how to overcome them.

The Building a Consensus for Better Pensions charter unifies voices from across the pension industry in calling on major political parties for reform.

The Building a Consensus for Better Pensions charter unifies voices from across the pension industry in calling on major political parties for reform.

In its 2019 manifesto, the Conservative Government pledged to keep the triple lock in place for the duration of its Parliament, but could rising wages force them to abandon this promise? Below we explain how the triple lock works, and why it will be an important part of the Government's manifesto.

Could the value of your state pension rise by more than inflation?

As interest rates rise, retirees are benefiting from higher annuity rates.

As interest rates rise, retirees are benefiting from higher annuity rates.

Almost 70% of low-income earners say they cannot afford to make any contributions to their workplace pension due to the rising cost of living. This is according to research from Legal & General Investment Management, who interviewed more than 5,000 workers across the UK private sector and classified a low-income earner as someone earning £10,000 or less a year.

Almost 70% of low-income earners say they cannot afford to make any contributions to their workplace pension due to the rising cost of living.

Savers have almost doubled the amount of money they hold in savings accounts during the pandemic, but with savings rates remaining low homeowners may be considering using excess savings to overpay their mortgage

Savers have almost doubled the amount of money they hold in savings accounts during the pandemic

The minimum age to drawdown a personal pension in the UK is increasing to 57 on 6 April 2028 2028.

The minimum age to drawdown a personal pension in the UK is increasing to 57 on 6 April 2028 2028.

In order for workers to enjoy a comfortable retirement that includes holidays abroad, a generous clothing allowance and a car they will need to have saved enough for a £33,000 per year income

In order for workers to enjoy a comfortable retirement they will need to have saved enough for a £33,000 per year income

There has been a rise in retirees withdrawing cash from their pension pots and depositing the money into easy access account, new statistics show

There has been a rise in retirees withdrawing cash from their pension pots and depositing the money into easy access account, new statistics show

The performance of your chosen pension funds can have a dramatic impact on the amount of money in your pot, so it’ll come as worrying news to learn that last year the average pension fund saw its biggest loss since the financial crisis.

The performance of your chosen pension funds can have a dramatic impact on the amount of money in your pot, so it’ll come as worrying news to learn that last...

Until the Government introduces the much-anticipated pensions cold-calling ban, the problem still seems to be widespread, with the latest research from Aegon suggesting that 91% of people have received cold calls in the past.

Until the Government introduces the much-anticipated pensions cold-calling ban, the problem still seems to be widespread, with the latest research from Aegon...

The FCA and TPR have today launched a joint TV advertising campaign, which aims to raise awareness of pension scams. With victims losing an average of £91,000 each, any intervention that could prevent more people losing money is welcome.

The FCA and TPR have today launched a joint TV advertising campaign, which aims to raise awareness of pension scams. With victims losing an average of...

The latest research from Aegon has revealed that of the 64% of people who have multiple pension pots, 22% have lost track of at least one of their retirement savings pots. Worryingly, this number has increased slightly from October 2016.

The latest research from Aegon has revealed that of the 64% of people who have multiple pension pots, 22% have lost track of at least one of their retirement...

The upcoming Moneyfacts Pension Trends Treasury Report has revealed that most pension and drawdown funds have seen yet another year of positive performance, resulting in 2017 becoming the sixth consecutive year to see overall fund growth.

The upcoming Moneyfacts Pension Trends Treasury Report has revealed that most pension and drawdown funds have seen yet another year of positive performance,...

As the Government announces plans to lower the automatic enrolment age for pension saving from 22 to 18, a new study has found that 69% of 16 to 21-year-olds think that extending auto-enrolment would be a good idea.

As the Government announces plans to lower the automatic enrolment age for pension saving from 22 to 18, a new study has found that 69% of 16 to 21-year-olds...

The pension freedoms were touted as a way to give retirees control over their pension pot, yet concerns remain over the sustainability of many of those pots, with a lot of retirees on course to spend their savings far too quickly.

The pension freedoms were touted as a way to give retirees control over their pension pot, yet concerns remain over the sustainability of many of those pots,...

Annuities used to be the go-to way to secure an income in retirement, but thanks to the pension freedoms, that’s no longer the case. Indeed, demand for annuities has plummeted in recent years, to be replaced by income drawdown.

Annuities used to be the go-to way to secure an income in retirement, but thanks to the pension freedoms, that’s no longer the case. Indeed, demand for...

We could all do with getting more engaged with our pensions, with frequent warnings that we’re not saving enough for retirement. That’s why the Pensions Awareness Campaign was launched, and today (15 September) is Pensions Awareness Day 2017!

We could all do with getting more engaged with our pensions, with frequent warnings that we’re not saving enough for retirement. That’s why the Pensions...

There have long been calls for a ban on pensions cold calling, with many retirees having lost their life savings to unscrupulous scammers. Happily, that kind of thing could be coming to an end, with new measures being put in place to protect savers.

There have long been calls for a ban on pensions cold calling, with many retirees having lost their life savings to unscrupulous scammers. Happily, that kind...

The pension freedoms have given retirees far more choice in how they spend their pension pot, yet it’s also opened the floodgates for pension scammers, as unscrupulous individuals target retirees' cash.

The pension freedoms have given retirees far more choice in how they spend their pension pot, yet it’s also opened the floodgates for pension scammers, as...

The Government announced yesterday that the planned increase to the state pension age will be brought forward by seven years, which has the potential to scupper the retirement plans of millions of workers. Will you be impacted?

The Government announced yesterday that the planned increase to the state pension age will be brought forward by seven years, which has the potential to...

We all need to do more to prepare for retirement, something sharply highlighted by the finding that around one in seven people are approaching retirement with no workplace or private pension whatsoever, leaving many wholly reliant on the state.

We all need to do more to prepare for retirement, something sharply highlighted by the finding that around one in seven people are approaching retirement...

Grandparents who give up work to take care of their grandchildren could be missing out on valuable state pension rights. So, if you're a grandparent taking care of a little one, make sure you’re building up all of the pension that you deserve.

Grandparents who give up work to take care of their grandchildren could be missing out on valuable state pension rights. So, if you're a grandparent taking...

We all like to think that we’d spot a scam from a mile away, but this may not be the case, with research finding that the vast majority of people actually miss common warning signs of pension scams – despite being confident that they’d spot them.

We all like to think that we’d spot a scam from a mile away, but this may not be the case, with research finding that the vast majority of people actually...

From today, millions of people have the chance to boost their retirement income by up to £25 a week through a top-up scheme. But what is the scheme, is it worthwhile, and will you take advantage? Here’s a run-through of everything you need to know.

From today, millions of people have the chance to boost their retirement income by up to £25 a week through a top-up scheme. But what is the scheme, is it...

As the initiation of the new pension reforms looms (6 April), the pensions industry is gearing up for the changes. But is enough being done to make access to pension pots and information simple and practical?

As the initiation of the new pension reforms looms (6 April), the pensions industry is gearing up for the changes. But is enough being done to make access to...

Retirees looking for a secure retirement income will be pleased to see that the average annuity income has increased year-on-year, but with average incomes still lower than they were in 2019, those entering retirement may want to consider alternative retirement income options

Retirees looking for a secure retirement income will be pleased to see that the average annuity income has increased year-on-year

Annuity rates are at their lowest point in the product’s history, with income payable falling by over 10% since the beginning of the year, research from Moneyfactscompare.co.uk reveals

Annuity rates are at lowest point in the product’s history, with income payable falling by over 10% since the beginning of the year

Annuities used to be the go-to way to secure an income in retirement, but thanks to the pension freedoms, that’s no longer the case. Indeed, demand for annuities has plummeted in recent years, to be replaced by income drawdown.

Annuities used to be the go-to way to secure an income in retirement, but thanks to the pension freedoms, that’s no longer the case. Indeed, demand for...

Keeping up with the cost of living coupled with market uncertainty has driven investors to withdraw more from their pension pots. Due to an increased need for cash to cover living costs and market uncertainty, the average value of income withdrawals from pensions increased in January and February this year. This is according to interactive investor, an online trading platform, which collected this data from its Self Invested Personal Pension (SIPP) product.

Keeping up with the cost of living coupled with market uncertainty has driven investors to withdraw more from their pension pots.

The freeze also includes the qualifying earnings band, with the lower limit remaining at £6,240 and the upper limit at £50,270. “The decision reflects the key balance that needs to be struck between affordability for employers and individuals and the policy objective of giving those who are most able to save the opportunity to accrue a meaningful level of savings with which to use for their retirement,” the Department of Work and Pensions said. As a result, it is estimated that the freeze will allow an extra 17,000 people to qualify for the auto-enrolment scheme. These numbers are expected to add an extra £26 million in pension contributions for the year. “The decision comes at a time when Government is under increased pressure to move forward with the findings of its 2017 Auto-Enrolment review. In it, Government pledged to remove the lower earnings limit by the mid-2020s, a move that would bring many more people into workplace pensions,” explained Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown. The report further claimed that if the earnings trigger was raised to £12,570 it would decrease the number of savers by an estimated 119,000 people, reducing the total pension saving by £111 million. Morrissey also noted that the Government has pledged to remove the lower earnings limit by the mid-2020s, a date which is not far away. “It is an issue the pensions minister was questioned about in the House of Commons recently and, while freezing the lower limit will boost auto-enrolment, the pressure will continue on Government to say when it will move forward with its recommendations,” she explained. However, in a statement released by the Government, the decision to freeze the wage trigger was also due to the “challenging economic circumstances arising from the COVID-19 pandemic”.

The freeze also includes the qualifying earnings band, with the lower limit remaining at £6,240 and the upper limit at £50,270.

Retirees looking for the security an annuity provides may be facing lower retirement income than expected as the average annuity rate fell by 2.90% between July and September (Q3)

Retirees looking for the security annuity provides may face lower retirement income than expected as average annuity rate fell 2.90% between July & September.

The amount self-employed workers saved into their pensions during 2019/20 fell to its lowest level despite a growing number of people declaring themselves self-employed, figures released by HMRC suggest

The amount self-employed workers saved into their pensions during 2019/20 fell to its lowest level

Growing optimism about the economy, combined with some older consumers continuing to feel the impact of the pandemic on their finances

Growing optimism about the economy, combined with some older consumers continuing to feel the impact of the pandemic on their finances

As house prices continue to rise, saving for a house deposit is becoming increasingly challenging for many would-be homeowners, resulting in parents and grandparents gifting money to help towards the deposit

As house prices continue to rise, saving for a house deposit is becoming increasingly challenging for many would-be homeowners

A survey of 7,000 retirees by consumer organisation Which? estimates those looking for a comfortable retirement need a pension pot of between £192,000 and £305,000 depending on whether they use pension drawdown or an annuity. In terms of income this equates to £19,000 per year to live comfortably when retired.

A survey of 7,000 retirees estimates those looking for a comfortable retirement need a pension pot of between £192,000 and £305,000

The stamp duty holiday combined with many homeowners realising a need for more living space, has resulted in a booming housing market

The stamp duty holiday combined with many homeowners realising a need for more living space, has resulted in a booming housing market

Consumers saving towards retirement are being warned to protect their pensions from fraudsters, as Action Fraud reports that £1.8 million has been lost to pension fraud so far this year

Consumers saving for retirement are being warned to protect their pensions, as Action Fraud reports that £1.8 million has been lost to pension fraud so far

The fact that equity release borrowers must be over the age of 55, combined with the sizeable market and strong consumer demand makes this an appealing area for scammers to target. We explain how to spot and avoid an equity release scam.

The fact that equity release borrowers must be over the age of 55...

Many workers hoping to retire in early 2021 will have had their retirement plans shattered by the Covid-19 pandemic’s impact on the economy

Many workers hoping to retire in early 2021 will have had their retirement plans shattered by the Covid-19 pandemic’s impact on the economy

The traditional equity release lenders; Canada Life and Legal and General have been joined by high street names such as Nationwide Building Society, Santander, TSB and Lloyds Bank. We’ve compared equity release providers below to help borrowers decide if they prefer to use a high street name or a specialist lender.

The traditional equity release lenders; Canada Life and Legal and General have been joined by high street names

As climate change starts to have a greater impact on our environment, many homeowners are finding that homes are more at risk of flooding than they were 10 or 20 years ago

As climate change starts to have a greater impact on our environment many homeowners are finding that homes are more at risk of flooding than 10 or 20 years ago

The numbers of people searching for buy-to-let in the UK has seen an increase of more than 2.5 times from the end of March to mid-July, according to Google trends data.

The numbers of people searching for buy-to-let in the UK has seen an increase of more than 2.5 times from the end of March to mid-July, according to Google tren

The number of pension savers choosing to drawdown money from their pension fell by 42% in April 2020 compared to the same month last year. The latest data published by trade body the Association of British Insurers (ABI) has also shown the number of people taking a tax-free lump from their pension more than halved.

The number of pension savers choosing to drawdown money from their pension fell by 42% in April 2020 compared to the same month last year. The latest data publi

While the number of self-employed women is at an all-time high of 1.7 million, a new report has found that over a third (35%) are not contributing towards a retirement savings fund

While the number of self-employed women is at an all-time high of 1.7 million, a new report has found that...

Nearly half (49%) of equity release customers used money from their property to pay off their mortgage between July and September this year

Nearly half (49%) of equity release customers used money from their property to pay off their mortgage between July and September this year

Only a quarter (25%) of workers are aware that when they start a new job their employer will set up a new workplace pension for them and that they are solely responsible for managing previous pensions

Only a quarter (25%) of workers are aware that when they start a new job their employer will set up a new workplace pension for them and that they are solely re

Retirees who did not take independent financial advice about their pensions were more likely to fully deplete their pension pots than those who sought advice about their pensions

Retirees who did not take independent financial advice about their pensions were more likely to fully deplete their pension pots than those who sought advice about their pensions

British workers are underestimating their life expectancy resulting in them not saving enough for their retirement, new research by Scottish Widows reveals.

British workers are underestimating their life expectancy resulting in them not saving enough for their retirement, new research by Scottish Widows reveals.

A recent survey by Nationwide Building Society reveals that only a third of over-55s plan to move to a smaller property in retirement.

A recent survey by Nationwide Building Society reveals that only a third of over-55s plan to move to a smaller property in retirement.

Over 10,000 grandparents and other relatives are receiving help with their state pension for looking after grandchildren, but many more are missing out on this benefit due to lack of knowledge about the scheme

Over 10,000 grandparents and other relatives are receiving help with their state pension for looking after grandchildren

There are now 38 retirement interest-only mortgages (RIOs) on the market, up from only five available six months ago in July 2018, according to the latest Moneyfactscompare.co.uk research...

There are now 38 retirement interest-only mortgages (RIOs) on the market, up from only five available six months ago in July 2018, according to the latest...

If you’re an older homeowner, the last few years may have been challenging if you were looking to remortgage, as providers lowered the maximum age allowed at the end of the mortgage term. Happily, however, this restriction is being scaled back.

If you’re an older homeowner, the last few years may have been challenging if you were looking to remortgage, as providers lowered the maximum age allowed at...

If you’re approaching retirement and still have an interest-only mortgage you’re not sure how you’ll pay off, you now have another option to consider – taking out a retirement interest-only mortgage. Is now the time to consider one?

If you’re approaching retirement and still have an interest-only mortgage you’re not sure how you’ll pay off, you now have another option to consider –...

Today sees the announcement of the 2018 Investment Life & Pensions (ILP) Moneyfacts Awards finalists. Shortlisted finalists will now have to wait until the glamorous awards dinner on 19 September to find out who take home the top prizes.

Today sees the announcement of the 2018 Investment Life & Pensions (ILP) Moneyfacts Awards finalists. Shortlisted finalists will now have to wait until the...

Many people long for the day they can give up work and enjoy retirement, but have you considered how you’ll pay for it? Unless you’ve planned sufficiently, it may be less comfortable than you're hoping, yet many are gambling on their future income.

Many people long for the day they can give up work and enjoy retirement, but have you considered how you’ll pay for it? Unless you’ve planned sufficiently,...

A new report by Moneyfacts has revealed that while the total amount of money being saved into personal pensions has surpassed the pre-financial crisis high, the retirement incomes that are being delivered are still 27% lower than in 2008.

A new report by Moneyfacts has revealed that while the total amount of money being saved into personal pensions has surpassed the pre-financial crisis high,...

When it comes to pensions, we need to be saving more. Which is why it’s so welcome to hear a renewed focus on encouraging retirement saving, and a call for the Pensions Dashboard to be quickly delivered. But how can it help you reach your goals?

When it comes to pensions, we need to be saving more. Which is why it’s so welcome to hear a renewed focus on encouraging retirement saving, and a call for...

Financial concerns can be pressing at any age, but arguably even more so during retirement - money is the biggest concern for 28% of retirees, while 35% are worried their cash will run out, and a quarter don’t think their pension will last.

Financial concerns can be pressing at any age, but arguably even more so during retirement - money is the biggest concern for 28% of retirees, while 35% are...

Do you think life insurance, critical illness cover and income protection is worth it? Perhaps you don’t think these policies pay out very often, but you may be surprised, as figures show that many people vastly underestimate the value of protection.

Do you think life insurance, critical illness cover and income protection is worth it? Perhaps you don’t think these policies pay out very often, but you may...

No-one likes to think about falling dangerously ill, but if you’ve got dependents, it’s vital to be prepared. This makes critical illness cover a vital part of any financial plan, and if you’re looking for a new policy, we may be able to help.

No-one likes to think about falling dangerously ill, but if you’ve got dependents, it’s vital to be prepared. This makes critical illness cover a vital part...

EDF Energy has announced that it’s raising its standard electricity prices for the second time this year. The move sees electricity prices rise by 9% and gas prices by 5.5%, with typical duel fuel direct debit bills rising by 7.2% from 21 June 2017.

EDF Energy has announced that it’s raising its standard electricity prices for the second time this year. The move sees electricity prices rise by 9% and gas...

As spring arrives, so do thoughts of becoming green-fingered - but unfortunately, the same applies to thieves. Many will be keeping a close eye on gardens as sheds fill up with pricey kit, so make sure your home insurance policy is ready for it.

As spring arrives, so do thoughts of becoming green-fingered - but unfortunately, the same applies to thieves. Many will be keeping a close eye on gardens as...