The impact on the retirement incomes will potentially be devastating because those who have taken out level annuities could see their real income halve in less than ten years.

Furthermore, Prudential have recently reported that retirement incomes have reduced by more than 16% over the past 5 years. This downward trend is likely to continue due to rising life expectancy and falling annuity rates.

With a combination of falling incomes and high inflation, a pension crisis is surely looming for those who do not have the protection of an index linked Direct Benefit Pension scheme.

Fortunately for many retired homeowners with insufficient pension incomes, there is an abundance of funding available if they choose to unlock some of the capital tied up in their homes.

With a modern Safe Home Incomes Plan (“SHIP”) endorsed equity release scheme, it is possible to set aside a cash facility which can be drawn down to supplement retirement income, and on a tax free basis.

Under a typical equity release flexible drawdown plan, funds can be withdrawn as necessary for meeting retirement needs. The providers have been going out of their way to make their plans more attractive to homeowners. For example, there are normally no drawdown fees and funds can be taken out very quickly and simply when required.

In order to learn more about the equity release plans available for releasing cash from their homes and  to provide an equity release comparison,, the equity release calculator from Bower Retirement Services enables retired homeowners to find out how much they could potentially be able release from their homes.

The Home Reversion share of the equity release market has fallen steadily over recent years and now stands at only 2% according to statistics published by Safe Home Income Plans (“SHIP”), the organisation established to safeguard the interest of consumers entering into equity release plans.

The impact of the withdrawal on competitiveness within the equity release sector will be limited because the AVIVA Home Reversion Plan has been funded via Grainger plc’ the owner of  leading Home Reversion provider Bridgwater Equity Release.

AVIVA has reassured participants in the equity release market that the Company remains totally committed to equity release and will now focus on its range of Lifetime Mortgage Plans which are funded from its own internal resources.

After the withdrawal by AVIVA, there will still be plenty of choice available for consumers for whom a Home Reversion Plan is the most suitable option for releasing cash from the home.

With much lower projected incomes for retired homeowners and the widely publicised likelihood of a pension crisis imminent, it will be surprising if the index remains at such a high level for long unless additional financial support for pensioners can be found.

Many people in retirement will already be maintaining their lifestyles through depleting their savings. Without a savings cushion, it is already becoming a struggle for them to manage on their incomes. Indeed, AVIVA, one of the many equity release providers, has recently predicted that the over 55s are significantly poorer than they were a year ago.

Liverpool Victoria (LV=), a leading equity release provider, has reported that over 6 million people in their 50s will work beyond state pension age because they no longer expect to be able to live on their pension incomes. Many are already discovering that the amount they can draw from their Personal Pension Plans is much less following recent changes to the pension rules and ever decreasing annuity rates.

Fortunately there is an alternative solution available. Equity release plans can now be structured in a manner which enables retired homeowners to supplement their incomes to meet routine monthly expenditures and to pay for the one off items.

With a cost which is fixed for life, a modern lifetime mortgage and  home reversion  plan  offers both certainty and security for those at or in retirement.

In order to learn more about the equity release schemes available for releasing cash from their homes and  to provide an equity release comparison,, the equity release calculator from Bower Retirement Services enables retired homeowners to find out whether a lifetime mortgage or home reversion plan might be appropriate for them.

In this way, equity release plans can maintain life satisfaction for the elderly at a high level… and boost Happiness & Well-being!

Because annuities and equity release plans are aimed at the same elderly customer base, it is notable that Lifetime Mortgage and Home Reversion Plan Providers are now keen to become involved in both business categories. They have recognised that one sector can finance and hence support the other. Thus the revenue stream from annuity sales is being earmarked (partially) to fund Lifetime Mortgages which attract a consistent and higher rate of return than that available from other secure investments.

At the consumer level, significant product development in recent years on annuity plans is now being mirrored in the equity release sector with the sums available for release being enhanced in cases of ill health and lifestyle.

With many consumers choosing to defer annuitisation in anticipation that the rates will improve, equity release can be an effective way of bridging the income gap until annuity purchase. A properly structured equity release plan can enable hard pressed elderly homeowners to make use of the £1tn of wealth tied up in their homes in a manner which supplements their retirement income.

After 30 years and a rocky past, the reputational issues and the risks associated with equity release have now largely been overcome. Equity release is now viewed as a force for good as Lifetime Mortgages and Home Reversion Plans take their place as mainstream retirement products alongside annuities.

SHIP was established in 1991 as an organisation to look after the interests of consumers entering into equity release plans. Its founder members included Hodge Lifetime, who are still active in the equity release market, and Home & Capital Trust. Following its takeover by Granger Trust plc, several members of the former Home & Capital adviser team have joined Bower Retirement Services.

SHIP has been extremely effective in promoting the benefits of equity release for consumers. As a consequence, the reputational issues which were so damaging to the sector have now largely been overcome. Following the introduction of the SHIP consumer safeguards (see below), equity release plans offer security, flexibility and enable elderly and potentially vulnerable people to have confidence in making use of the equity tied up in their homes for releasing cash lump sums and/or supplementing their retirement incomes.

The Principal SHIP Safeguards:

• No rent or interest payments
• The right to move
• Security of tenure for life

SHIP has up to date been run exclusively by its Product Provider members. The extension of membership to other categories of stakeholder will make the organisation more diverse and representative of the sector. As a consequence, SHIP will be better equipped to enhance and enforce consumer protection standards. Furthermore, the organisation will become widely recognised as a force for good by consumers and Government. Equity release plans are now mainstream products for those at or in retirement. The strengthening of SHIP should be the catalyst for considerable growth in the market at a time when many pensioners are being squeezed by reduced incomes and an increased cost of living.

The equity release experts take home a hat-trick of awards

December 1 2011 – Bower Retirement Services proved that they are still top of the equity release game by scoping three prizes at the annual Equity Release Awards 2011 on Wednesday night. Bower Retirement Services, who are already an award-winning independent UK equity release specialist, cemented their presence in the equity release sector by topping their own Equity Release Awards record as 2009’s Best Financial Adviser. This year’s results reflected the commitment and equity release expertise Bower Retirement Services have become notable for. They won the following awards:

• Best Overall Adviser
• Best Financial Adviser – 10+ employees
• Outstanding Contribution

Bower Retirement Services beat the competition to the Best Overall Adviser award which celebrates both their industry know-how and recommendable equity release advice. They championed again by winning the Best Financial Adviser prize – a testament to Bower Retirement’s customer friendly services and guidance. To be nominated for the Best Financial Adviser award, companies must have over 10 employees. The award for Outstanding Contribution went to Bower Retirement’s Managing Director, Geoff Charles. Geoff’s commitment to the equity release industry is unsurpassed and his experience and knowledge of the business are second to none.

Bower Retirement Services have become a leading player with their equity release expertise. Specialists in their field, all advisers have undergone intensive financial training and are fully qualified for their respective roles. Employees are chosen on account of their individual specialisms and long term experience in the equity release sector. Bower Retirement Services provide customers with the very best specialist independent   financial guidance on equity release plans for those at or in retirement – its official.

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About Bower Retirement Services

Bower Retirement Services are an award-winning specialist independent UK equity release advice company. Fully regulated and authorised by the Financial Services Authority (FSA) to provide advice on equity release products from the whole market. Winners at the 2009 and 2011 Equity Release Awards, Bower customers are guaranteed to receive the very best impartial equity release advice.

PR Contact

Simon Chalk, +44 (0)7734 151 251, pr@brsequity.co.uk

With rising life expectancy, diminishing annuity rates and low returns from saving, the projected incomes for those at or in retirement are being squeezed like never before.

There is therefore a great risk that retirement will not be a pleasant experience for those who had planned to fund travel and other special activities out of their pension income in the early years of retirement. This will come as a huge shock to those who have been prudent enough to invest in defined contribution pension schemes.

In the current economic environment, it is probable that many of these people will choose to defer withdrawing funds from their pension pots in anticipation that the returns will be better at a later date when, for example, the cost benefit from annuitisation may be more favourable.

However, if using the pension pot is delayed until after the age of, say, 70, it is necessary to find an alternative method of generating an income during the early retirement years.

Equity release is increasingly being used to provide the solution. A modern drawdown plan can be structured in manner which enables pension income to be topped up to finance initial retirement needs, and to bridge the gap between retirement and annuity purchase.

According to the latest figures released by Safe Home Income Plans, over 60% of plans sold are now flexible as funds can be released as and when necessary.

By making use of the equity tied up in their homes, it is still possible for homeowners to make their retirement years “The best Years of their Life”.

The equity release sector has rebounded strongly in the third quarter according to the latest figures released by Safe Home Income Plans (“SHIP”) which show that new advances were 12% up on the previous quarter.

The growth in the market reflects the fact that many ageing and elderly homeowners are feeling the pinch. It is becoming apparent that many of them will be looking to rely upon equity release for supplementing their pensions at a time when savings are depleting due to the low level of interest rates, and the cost of living continues to rise.

Equity release is also becoming commonly used as a method of repaying interest only mortgages when they reach their redemption date.

There is however welcome news to those at or in retirement this Christmastime. The funding for equity release is plentiful and there is also the possibility of enhancing the sum released in cases of poor health or lifestyle.

The Office of National Statistics is forecasting that one in six of us will live to be over 100. This prediction implies that there will be over 10,000,000 Centurions in the UK by the end of this century. This would be fine if we could remain able bodied and fit for continuing our careers for much longer- assuming the jobs are there. However it has become increasingly apparent that despite the enormous progress in medical science, our health and faculties still deteriorate fast and many will be incapable of continuing to work after reaching their sixties at the latest.

The retirement period should be the best years of our life but this will not be achievable without adequate pension plans and significant saving. For most people, acquiring their home and getting it mortgage free before retirement will remain the main priority, not the pension.

It is therefore a comfort that equity release schemes are now available which are specifically designed to help people to supplement their pension incomes. The latest figures from Safe Home Income Plans (“SHIP”) reveal that over 60% of plans sold are now entered into on a drawdown basis. This percentage can be expected to increase matching the growth in the number of people in retirement, many of whom will become Centurions.

Unfortunately many of these people are finding that moving is not so straightforward in the current economic climate with house prices according to Nationwide have fallen over the past year. Whilst the bottom end of the market has shown some resilience, it is not so easy to sell properties valued in the middle price ranges. As a consequence, the opportunity for downsizing is limited by the lack of younger homeowners seeking to upsize.

Due to the long timescales often involved with downsizing (if it can be achieved at all), equity release plans are being used increasingly as a means for elderly people to supplement their incomes until they can sell their own homes. As modern equity release plans with Safe Home Income Plans (“SHIP”) safeguards are portable, homeowners have the reassurance of knowing that their Lifetime Mortgage or Home Reversion Plan does not have to be redeemed fully when and if their homes do actually find a buyer.

Thus retired homeowners do not have to wait until they have downsized before completing an equity release plan.

BOWER RETIREMENT SERVICES offer personal, quality advice with a specialist team of financial advisors dedicated to giving you the best, independent equity release advice. We are here to help and can give you access to all of our exclusive deals and offers. Make the most of our £950 cash back or free survey offers in the run up to Christmas.

To understand all of the features of a lifetime mortgage or a home reversion plan please ask for a personalized illustration in the comfort of your own home. Book an appointment with a financial advisor from our award winning team.

Try our free Equity Release Calculator (www.brsequity.co.uk/calculator) and find out how much you could unlock from your home

Bower Retirement Services is an award winning FSA regulated independent financial advice company offering specialist equity release advice throughout the UK.

For more information email info@brsequity.co.uk or call Freephone 0800 4118668

Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration.

BOWER RETIREMENT SERVICES – personal quality advice

Many of these people will be homeowners but only a small percentage will have made use of equity release as a means of improving their pensions and standard of living.

The competition between the equity release providers is currently intense and as a result, there are some very attractive Lifetime Mortgage and Home Reversion deals available which reduce significantly the costs of entry into an equity release plan. Furthermore, the amounts which can be released are rising particularly for those in poor health or who have lifestyle issues.

Given the wide choice now available, it is more essential than ever for those at or in retirement to seek specialist advice. Bower Retirement Services offer independent financial advice on equity release and have access to all the reputable available including exclusive deals on some products.

Try our free Equity Release Calculator www.brsequity.co.uk/calculator

Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration in the comfort of your own home with a Financial Advisor from our award winning team. Bower Retirement Services is an FSA regulated independent financial advice company that offers specialist advice on equity release throughout the UK. For more information email info@brsequity.co.uk or call 0800 4118668.