MANY of Britain’s over-60s are sitting on a gold mine without knowing it, a new study shows today. Norwich Union’s ‘Grey Matters’ research shows that more than half of older people have lived in their current home for over 30 years, yet have no idea how much it has increased in value - even though the average rise over the past five years is almost £40,000.*
MANY of Britain's over-60s are sitting on a gold mine without knowing it, a new study shows today.
Norwich Union's 'Grey Matters' research shows that more than half of older people have lived in their current home for over 30 years, yet have no idea how much it has increased in value - even though the average rise over the past five years is almost Ł40,000.*
And 80 per cent of them would not consider cashing in by moving to a smaller property because they can't imagine living anywhere else.
The 'Grey Matters' study also shows that the over-60s aren't being as clever with their cash as they could be - especially when it comes to seeking financial and legal advice.
A staggering 94 per cent don't know that IFA stands for an independent financial adviser and only two-fifths have ever sought professional financial advice.
When it comes to seeking legal advice, a third of over-60s haven't sought advice from a solicitor for more than 10 years and 15 per cent have never sought any legal advice.
Instead, the over-60s rely on and trust family members most when it comes to financial advice and decisions - followed by their bank manager.
As most people don't want to sell the home they are emotionally attached to, but want to get their hands on some extra cash, one option they may like information and advice about is equity release.
To help the over-60s and their families understand how equity release works, Norwich Union has produced a free step-by-step guide called 'Unlock your future - equity release made easy'.
The guide, written by a personal finance journalist, is designed to provide impartial, straightforward information about the various steps involved in choosing and taking out an equity release policy.
It includes details about how to gather information about the various plans available, the valuation process, the legal paperwork and keeping in-touch with the equity release provider. It also includes a checklist and jargon buster of difficult terms or phrases.
Daren Carter, head of equity release marketing for Norwich Union, said: "It's estimated that the over-60s in the UK have around Ł550 billion of equity tied up in their homes. Yet our research shows that making financial decisions, especially where your home is concerned, can seem daunting. That's where we hope this guide will help.
"Our aim is to help take some of the mystery out of the equity release process by giving the over-60s and their families the confidence to make the right choices to help them put cash in their pockets so they can get the most out of retirement."
Peter Everett, spokesperson for leading national estate agents Your Move, said: "In the past, we've sold many properties for over 60's where we've felt that they clearly didn't want to leave but thought that they had no practical alternative.
Equity release schemes offer a wonderful opportunity for people who want to release some capital from their homes without having to go through the potential hassle and heartache of moving."
To obtain a free copy of Norwich Union's 'Unlock your future - equity release made easy' guide call Freefone 0800 122 876
-Ends-
For further media information, contact Anja Kueppers or Matthew Buchanan at QBO on 020 7379 0304 or Louise Zucchi at Norwich Union Press Office on 08703 666860
Notes to editors:
* Council of Mortgage Lenders (BSM/SML) Mix Adjusted House Prices at Mortgage Completion Stage, All Houses, UK Regions, 1996-2000
- Norwich Union commissioned an independent survey of 496 people aged over 60 in March 2001 and May 2001.
- People interested in finding out more about Norwich Union's equity release products should call 0845 300 2493 or talk it over with their own Financial Adviser.
- CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN DOUBT SEEK INDEPENDENT ADVICE.
- Norwich Union offers two options for people wanting to release cash from their home. The Flexible Cash Release Plan releases a cash lump sum and the Flexible Income Release Plan enables customers to receive a regular income - or the option to take up to 25 per cent of the money released as a cash lump sum as well as a regular income. Loans are secured by a legal charge on their property.
There is nothing to repay during the customers' lifetime unless the house is sold or they need to go into long term care.
The plans should be seen as a lifetime commitment. Substantial early repayment charges may be payable if the loan is repaid for a reason other than death or long term care needs.
Full terms and conditions or a personal illustration are available on request.
The income under a Flexible Income Release Plan is provided by a Norwich Union Immediate Life Annuity. The annuity has no cash in value at any time. Part of the income received under a FIRP is taxable as savings income.
Entitlement to state/tax benefits may be affected by taking out an equity release plan.
Norwich Union only advises on its own products. - CGU and Norwich Union merged on 30 May 2000 to create CGNU plc - the world's 6th largest insurer, the UK's largest insurance group and one of the top-five life insurers in Europe with substantial positions in other markets around the world.
- CGNU's principal business activities are long-term savings, fund management and general insurance, with worldwide premium income and retail investment sales from ongoing business of over Ł27 billion and assets under management of more than Ł210 billion (correct as at February 2001).
- From October 2000, the combined life and pensions, general insurance and retail fund management businesses in the UK operate under the Norwich Union brand, while the institutional investment business operates under the Morley Fund Management brand.
- Norwich Union's news releases are available on this website