LEEDS, UNITED KINGDOM -- (Marketwired) -- 04/05/13 -- Asda Money looks at five ways anyone who has notched up half a century can take advantage of the financial options that open up when it comes to improving your finances after 50.
With the number of people aged 65 and over projected to rise by nearly 50% (48.7%) in the next 20 years (to 16 million)(1), the milestone of turning 50 is now seen by many as the opening of a new chapter in our lives.
Many of those who took a mortgage out in Britain in the 1970s and 1980s have been taking advantage of the lowest interest rates in history to pay down their mortgage in recent years and are now set to reap the rewards(2).
Currently around 8.6 million homeowners in the UK do not have a mortgage, but by 2015 Hometrack predicts this figure will have increased to 9.5 million(2). This means that a whole generation of older people will see an increase in disposable income which formerly was put aside for mortgage payments.
Refinance or downsize
If your mortgage is paid in full it might seem strange to consider remortgaging, but for some taking advantage of record interest rate lows could be a cheap way to raise funds for other uses.
Whether it is worth refinancing depends on a number of factors, including how long you plan to stay in your current home or if a future downsizing figures in your plans.
A family home where children have left to follow their own adult lives can mean that the size of a property is surplus to requirements. It can also mean you could make use of the extra space by renting out a room or taking in a lodger or overseas student.
There are tax allowances for income derived from 'rent a room' uses and it can be a simple way to make a new income stream.
Keep On Working
Although some people look forward to retiring on a good work related pension, increasingly more and more people are looking to defer retirement and keep adding to savings and pension pots as long as possible.
For many people the key to a happy and healthy life is to keep active and so this period of life is a great time to diversify a little and see if a hobby or interest could be turned into a future source of income.
Pensions and Insurance Policies
With life expectancies constantly becoming longer insurance policies become more important when it comes to financial planning options. Asda Over 50s Life Cover is a great way of adding an extra option when it comes to looking after your loved ones and providing a separate financial safety net.
Notes to Editors
About Asda Over 50s Life Cover
-- From just GBP 5 a month, that's about 17p a day-- Guaranteed acceptance-- For 50 to 80 year olds living in the UK-- Guaranteed cash lump sum-- Pays out after just 1 year-- Fixed payments that never go up
Asda Money is a trading name of Asda Financial Services Limited. Asda Financial Services Limited uses a selection of companies to provide its products and services. Please refer to www.ASDA.com/money for details of our product partners and the relevant terms and conditions for each of our products and services.
Liverpool Victoria Friendly Society Limited: County Gates, Bournemouth BH1 2NF.
Asda Financial Services Limited and Asda Stores Limited act as an introducer appointed representatives to Liverpool Victoria Friendly Society Limited (LVFS) for Asda Over 50s Life Cover. Asda is a trademark of Asda Stores Limited. LV= is a registered trade mark of LVFS and is a trading style of the Liverpool Victoria group of companies. LVFS is authorised and regulated by the Financial Services Authority, register number 110035. LVFS is a member of the ABI, AFM and ILAG. Registered address: County Gates, Bournemouth BH1 2NF
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