Government issued gilts have historically been the safest forms of investment. Issued by the British government to fund national borrowing, risks are low and returns have – until relatively recently – been attractive. However, there has been a drastic reduction in gilt rates lately and this is having a disastrous affect on retirees relying on income drawdown to annuities to fund their retirement.
Most other savings methods are proving to be just as fruitless. Interest rates remain low and standard unsecured borrowing is not an option for retirees. However, Bower Retirement Services suggests a viable alternative.
Equity release allows homeowners to release cash locked up in the bricks and mortar of their home. Equity release firms lend homeowners money based on the value of their property. Bower Retirement Services has created an