Sunday, September 21, 2008
Category:
Secured Loans
According to MGM Advantage, 35 percent of over 55 year olds have had to put their retirement plans on hold to continue working as a result of the recession.
Furthermore, the retirement income specialist has revealed that 23 percent of over 55 year olds are intending to work beyond the State retirement age of 65 following the decimation of their pension funds amid the economic downturn. It would seem that the declining value of stocks and shares has meant significantly reduced pension pots for many people with defined contribution pension schemes.
The research conducted by MGM Advantage also uncovered that a large number of people who are on the brink of retirement are not prepared for post-work life, or the potential drop in income. In fact, the research indicated that 32 percent of over 55 year olds are ‘not prepared at all’ for retirement, and an additional 35 percent have not taken any steps to ready themselves.
Director at MGM Advantage, Craig Fazzini-Jones, commented: "One of the most worrying consequences of the economic turmoil is the knock-on effect for those approaching retirement. Millions of people nearing the end of their working life have been forced to slog it out for a few more years to see if their pension pots will make any kind of recovery. For many it is not a choice, but a necessity.
"It is hugely concerning that so many people are so unprepared for retirement. There is a definite need for those approaching retirement age to make the most of their pension pots and one of the best ways to do this is to compare the market for the best deal when it comes to converting your pot into annual income."
Findings reveal that the annual sum of money earned by retired people has risen by 79 percent, from £14.4 billion in 1994 to £26 billion today. Moreover, MGM Advantage suggests that many individuals over the age of 55, who are not yet retired, are finding it necessary to look for additional sources of income to bolster their pension pots. The company’s research figures show that 9.3 percent are thinking about releasing some equity from their home by means of equity release schemes or downsizing.
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Homeowners who are looking to re-organise their finances amid the recession, could consider taking out a
secured loan to tie any existing debts up in one place. One of many options available, a secured loan for debt consolidation could reduce multiple monthly repayments down to just one. This single monthly repayment could even be lower than current outgoings, thereby freeing up a little extra in the short term for the borrower to save for later on. However, when taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
