Monday, July 13, 2009
Category:
Secured Loans
According to Aviva, today’s young people could be referred to as ‘the forever generation’.
This title comes as a result of them potentially having to work for longer, pay their mortgage for longer, and have children living with them for longer. It would seem that changes in lifestyles are causing major events, such as flying the nest and getting married, to be delayed by up to seven years compared to 30 years ago. In respect of this, Aviva has advised that retirement plans should not be put off.
As Aviva reveal that the average age of a first-time buyer stands at 34 years, it is thought that this will rise to 41 years by 2039 if present trends continue. This could mean that it becomes common to pay off a mortgage at the age of 80 years, given that some lenders are now offering 40 year mortgages. In relation to the average age of retirement, this is currently just over 64 years for men and virtually 62 years for women. However, these figures are both set to rise to 68 by 2046 due to changes in the state pension allowance. The outcome will be a longer stretch of employment prior to drawing a state pension.
Where live-in children are concerned, there has been a gradual rise in the number that opt to remain with their parents for longer. In fact, 29 percent of men between 20 and 34 years of age reside at home, which marks a 300,000 increase on the figure recorded in 2001. Darren Dicks, Head of annuity propositions for UK Life at Aviva, commented: "There is a risk that without forward planning, today's young adults could end up in a work-to-live cycle for what feels like ‘forever'. Without suitable pension provision and a means to pay off their mortgage before retirement, people could find themselves having to work for much longer than they do now.
"And if people have children in their 40s who then live with them into their 30s - a trend which is currently growing - people could be supporting their ‘children' well into what has traditionally been a time to retire and relax.
"On a more positive note, life expectancy is also increasing steadily, rising from 82.8 and 86.8 respectively for men and women born 30 years ago, to 88.5 and 91.8 for people born now. So even though people are working longer, they are also living longer in retirement. This underlines the importance of planning ahead and preparing for a long life."
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Homeowners who are currently reviewing their finances may wish to consider taking out a secured loan as a means of tying up any existing personal debts. One of many finance options available, a
secured loan to consolidate debt, could leave the borrower with a single monthly repayment as opposed to several. In addition to relieving the stress associated with juggling multiple repayments each month, the new secured loan repayment could even be lower than current outgoings – thus freeing up useful money, which could be put into pension funds. However, when taking out a secured loan to consolidate debt,, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
