Life stages – the role of Lifetime Mortgages in retirement planning

In the first of our ‘Life stages’ webinars on equity release, Karl Steadman speaks to our experts about the role of property as part of a retirement plan. The transition into retirement might mean settling existing arrangements, a gradual move away from earned income and ensuring all means of meeting initial capital and income objectives have been explored. When it comes to the role of property wealth, there are many options to consider. Recent developments in the market give clients more flexibility, control and ability to personalise their plans. With all the different types of lending available, there’s a lot to think about.

Learning Objectives:

• Understand the impact of health and lifestyle for lifetime mortgage arrangements.
• Recognise the flexible options available on lifetime mortgages.
• Discuss the alternative options for using property wealth in retirement planning.

CPD: 45 mins

When it comes to reviewing a client’s retirement plan, many things may have changed since the initial advice was given. Those reliant on investments may have seen their funds impacted by recent events, requiring a need to reassess the assets they are using to sustain their financial needs in retirement. For those already using equity release, it’s important to ensure that the plan still meets their needs and if it’s appropriate to use some of the flexible options available. Perhaps new objectives can be met through further borrowing or there may be an opportunity to reduce the liability. Depending on the value of the property, changing lifestyle or medical circumstances, it may be appropriate to reassess the use of equity from the home.

Learning Objectives:

• Consider when it’s appropriate to bring property into an existing retirement plan.
• Understand the options when reviewing ongoing suitability of equity release.
• Recognise how flexible options can be implemented.

CPD: 45 mins

For many people, property is their main source of wealth. However, this asset is often used to pay for additional needs in later life, such as long-term care. At the same time, some clients may be keen to leave a legacy or at least ensure their family aren’t left with the worry of financial debt.

There are a number of ways in which property equity might be used in later life. There may be circumstances where a lifetime mortgage is suitable, or an existing plan can be flexed to respond to changing circumstances, or an immediate needs annuity might be appropriate. Either way, personalisation of the options can make a big difference.

Learning Objectives:

• Recognise the place for equity release in later life.
• Understand the options that might be applicable where a care or other need arises.
• Discuss the wider options for accessing property equity in later life.

CPD: 45 mins