Over one million or 10% of pensioners are deliberately choosing to live on less income so they can l...
Over one million or 10% of pensioners are deliberately choosing to live on less income so they can leave an inheritance, claims the Prudential.
Research conducted on behalf of Prudential indicates that pensioners are restricting their income even though many own their own homes which will eventually be left as an inheritance.
Around 34% of the 500 people questioned claim life is financially more difficult when they stop work, says the Pru research, and around one in three people live on £10,000 a year or less.
Of course, this is part of a new marketing campaign by Prudential to highlight use of its equity release programme, which, says Prudential's national mortgage manager, John Malone, could unlock up to a third more additional income for retirement and still provide a healthy inheritance to around 70% of pensioners.
"Our research shows that around one in three retired people live on £10,000 a year or less. This is perhaps not surprising when you consider that 80% of pensioners have seen their monthly income drop by an average of £347 since leaving full time employment," says Malone.
"However, in many instances this does not have to be the case because the seven million retired homeowners in the UK are sitting on around £693bn worth of equity in their homes. They could release some of this and dramatically improve their spending power and standard of living, still leave an inheritance and also pay less in inheritance tax."
For more details about Pru's equity release plans, contact your local sales support or click thru the right-hand link.
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