ONGAR, ENGLAND, February 25, 2013 /24-7PressRelease/
-- Owing to a proposed shake-up of the social care system in England and Wales, there will be a cap of GBP75,000 on the amount elderly people will pay towards social care. Furthermore, health secretary Jeremy Hunt wants to raise the threshold from GBP23,250 to GBP123,000 in the amount of assets people have before contributing to the costs of nursing care. Currently, around 40,000 people are forced into selling their homes to pay for social care in their older years.
For homeowners, equity release has been a viable means of support in older life. Elderly homeowners can release valuable cash locked up in their homes to fund their retirement. However, much of this 'released' cash is ploughed straight into care costs. But under these new proposals, Bower Retirement Services believes this will change.
With a greater contribution flowing from the government as well as an increase in the threshold for which people have to contribute elderly homeowners making use of equity release schemes can use their released cash for other means and really enjoy their retirement.
There are several types of equity release with Bower Retirement Services
, which acts as an advisory firm
guiding homeowners on the best possible plan for their needs. However, the most popular plan for elderly homeowners looking to enjoy their twilight years is a lifetime mortgage with flexible cash release, also known as a drawdown scheme.
Under this type of plan, homeowners can release a percentage of the value of their property and receive this cash as and when they need the money. Interest is charged, as with any loan, but unlike traditional mortgages homeowners have no monthly repayments and no fixed term. The loan, along with the interest, is repaid when the property is sold.
These cash withdrawals can supplement the income giving freedom and flexibility to the elderly to enjoy their retirement as they wish. With a little extra room for manoeuvre in the future if the new social care proposals are transferred into law, the elderly will be able to enjoy some of the finer things in life without the worry of footing extortionate social care bills.
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