As you get older, your income drops and your expenses can increase. Many elderly people find that money gets tighter in retirement, so it is important to manage your money well. Getting approved for financial aid like a loan can be more difficult when you are retired, but there are still plenty of options available. Here are the different types of financial aid the elderly can get.
Taking money out of your home through equity release is more popular than ever. Equity release can be a great way for elderly people to get a lump sum from their property without having to move to a new house. The average amount released from properties in the UK last year was £75,600 according to a survey by Key Retirement Solutions. This money can be used to carry out home improvements, make senior-friendly modifications, or clear outstanding debt. The major benefit of equity release is that you will receive a tax-free lump sum of money to spend. You may also have the option to receive equity release in the form of a monthly income, in exchange for a percentage of the value of your property. Monthly payments can be extremely useful for elderly people who are on a low income and struggling to cover their living costs. That said, there are some drawbacks of equity release. For instance, you will end up paying more interest on your debt and other benefits may be affected. It is always advisable to speak with a finance expert before applying for equity release.
Elderly people often find it more difficult to get approved for a mortgage, especially when they are no longer working. Applying for a joint mortgage is one way for retired people to secure a mortgage. With a joint mortgage, you buy a property with another person and put the mortgage in both of your names. Keep in mind that many mortgage lenders have a mortgage age limit that is usually between 70 and 85 years. If you are older than the maximum age, then the person you are getting the mortgage with will need to prove that they can cover the monthly mortgage repayments with their income.
Car or “logbook” loans are easy for elderly people to get because they are secured against the value of your vehicle. One advantage of securing a loan against your car is that you typically get access to lower interest rates. You can access the money quickly and then pay the money back over a set period. Seniors should be aware that there is also financial aid for the elderly that can assist in emergencies. For instance, you can apply for bereavement support payment if you lose your husband, wife, or partner.
Your golden years should be all about relaxing and enjoying the rewards of your hard work. Unfortunately, money can get tighter when you stop working and many elderly people struggle with money issues. The good news is elderly people can still take advantage of financial aid and use the money to improve their quality of life.