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Will the increase in the cost of living lead to a rise in equity release popularity
01/06/2010
According to new figures, rising inflation means retired householders in the UK have seen their cost of living increase by £800.
This might well lead a number of homeowners to think about taking out an equity release plan to help increase their finances.
According to MGM Advantage, the latest annual increase of 3.7 per cent in the Consumer Price Index means people aged between 65 and 74 years must now spend £23,000 per year.
They also said the increase in inflation means people over 75 years need to spend £13,150, an increase of £400 a year, to maintain their lifestyle.
The sales and marketing director at MGM Advantage, Aston Goodey, stated that given inflation is pushing up the cost of living, many retired households are feeling the pinch due to having fixed incomes through their annuities. Looking to the future we need to take control of our own financial future by investing in asset backed annuities that will keep some funds invested in the stock market, thus allowing for future growth.
Homeowners can also increase their income with cash taken from the value of their property through the use of an equity release plan. Those homeowners who would like to know how much cash their property could release can find out by using the equity release calculator provided by therightequityrelease.co.uk
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