Month: May 2018

Contactless is coming; in fact in Sweden, for example, there are stores that are already refusing to accept notes and coins. Balance to balance transfers through mobile phones are also gradually being adopted in developing countries. From the government’s standpoint, the anonymity that physical cash provides is a drawback, as it can unfortunately be used as a cover for tax evasion and crime, so we can expect regulated contactless technology to be encouraged at all levels.

Of course there are people who hold concerns about the direction things are heading in. Mattias Skarec, a Swedish Digital Security Consultant, points out that no technology-based system is invulnerable to glitches and fraud. “We are naive to think we can abandon cash completely and rely on technology instead.” Speaking of problems with card payments that two Swedish banks have experienced during the last year, he states, “We are lucky that the people who know how to hack into them are on the good side, for now.” However, “we don’t know how things will progress. It’s not that easy to attack devices today, but maybe it will become easier in the future.”

As with any new development, it’s a case of balancing any disadvantages with the potential it offers. Meanwhile, dream of what a brave new world could bring you…

Around 60 per cent of people using lifetime mortgages put the money towards home renovations, to increase the value of the estate. Legal and General even offer a trial ‘property refurbishment’ equity release plan, that has just been extended from the capital to several towns and cities around the UK. This plan determines the amount you can borrow by the projected value of the home once the renovations are complete, and is particularly useful for those living in homes in need of repair who are considered ‘equity rich’.

2. Picking a protective plan

Plans are available which shield a portion of your home’s value from your equity release lender. This means you can guarantee that if that portion remains untouched, it can be passed on to your descendants. Plans with ‘inheritance protection’ are widely available; where a typical plan would allow a maximum of a 35 per cent equity release, these would allow you to release half of that amount.

3. Release ‘gifts’ to mitigate IHT

Any financial gift that is given to your descendants will be exempt from tax if you live for seven years. If you’re in good health, you can use equity release to reduce your ‘death tax’ or even bring you below the taxable threshold if you are near the IHT margin. For example, you could support a relative who needs help with their housing deposit, or clear their mortgage now to avoid inheritance tax later. Of course, this comes with its risks as dying within the seven year time limit will bring about an unexpected tax bill for the recipient and in those seven years the interest accrued could wipe out the IHT saving.

Equity release is not right for everyone – if you have any questions around this topic, please feel free to get in touch directly.

Secondly, work can be a great contributor to stress, creating hypertension which is in turn a huge risk factor for potentially fatal conditions. In the study, retirees were shown to be significantly less likely to fall victim to cardiovascular diseases or strokes.

Of course, there can be benefits to staying in work too. Participating in a work environment is a good way of keeping your mind and body active. On top of that, being part of a team helps develop and maintain a sense of purpose and belonging that is essential to cognitive health and development.

That’s not to say that all these benefits can’t be achieved outside of work; the key is to find a hobby, interest or cause to involve yourself in. As is so often the case, there’s no single solution. It’s important to find the best path for you, whether that’s staying in work, retiring early or going part-time. Whatever you choose, spend your time wisely as it could have a major impact on how long your retirement turns out to be.