Average pension cost into five figures

Video transcript

The average annual cost of being a pensioner is over £10,000 a year, but there`s plenty of variance across the country, so considering retirement financing routes such as equity release could be a useful idea for some.

Key Retirement Solutions has found that people over the age of 65 in the South East will shell out close to £12,000 (£11,945) each year, with a total spend of £17.7 billion. By contrast, their Welsh contemporaries will pay less than £9,000 (£8,829) each, for a total of just under £5 billion (£4.96 billion).

It could be reckoned that people who live in the South East will earn more during their working lives due to higher wages in that area, but people move about a lot so they could retire to a more expensive area than they lived in while they were in employment.

However, Dean Mirfin from Key warns that the current state pension - and even the proposed new rate - won`t cover even the average Welsh pensioner, so many will have `harsh spending decisions to make unless they have… other assets such as the home`.

With a property, equity release through a life time mortgage is an option that could provide relief, either in the form of a one off lump sum or a regular drawdown amount that can supplement the state pension and any private pensions a person may hold.

At First Choice Finance, we`ll look into our lenders products to see which equity release lifetime mortgage plan may work for you. We`ll then present it on a no obligation basis, for you to decide if you want to go ahead when you are ready. Bear in mind your income and credit history are not normally a factor in this type of releasing equity so get in touch to find out what is available for you through First Choice Finance.

Find out more about the equity release plans that could make retirement much more comfortable, head to firstchoicefinance.co.uk or call for free 0800 298 3000 or on your mobile its 0333 003 1505.

Home Equity Release

Equity release is a method of obtaining access to the money locked into the value of your home but without having to sell or move from your property. Choosing the right Equity Release Company who provide the best equity release scheme is of paramount importance as you only have one chance of making the right decision.

Equity release Advice
With so many equity release Companies offering many different equity release plans, all with varying fees and charges; it can be extremely challenging to find the best equity release scheme. First Choice Finance is an equity release broker who specialise in providing expert advice to persons exploring the possibilities of releasing the equity in their home.

Finding the best equity release scheme
First Choice Finance will find the best equity release scheme for your own set of circumstances. After you have given your circumstances to your equity release adviser, they will be able to calculate the best equity release scheme from our database of equity release companies in our panel of lenders.

Using our service When using our service you will receive expert advice on home equity release schemes. You can apply to use our service by using our contact form, simply fill out the form and we will arrange your no obligation consultation with one of our experienced equity release advisors.

Homeowner Secured Loans 9.8% APRC. Representative example: Borrow £50,000 over 180 months. 60 months at 8.1%, £497.83 pcm fixed at 60% LTV. Then 120 months at 10.1%, £539.89 pcm variable. Total payable £94,656.60. Total cost of credit £44,656.60 (including: £795 lender fee, £985 broker fee & £42,876.60 interest). First Choice are tied to certain loan providers.

Mortgages & Remortgages 8.4% APRC. Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)

Unsecured Personal Loans REPRESENTATIVE 49.9% APR (VARIABLE) First Choice are tied to certain unsecured lenders.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Security is required on immovable property.

Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.

First Choice Finance is a trading style of First Choice Funding Limited of 54, Wybersley Road, High Lane, Stockport, SK6 8HB. Copyright protected.