The lengthy list of ambitions people begin itemising during their fresh-faced salad days are, by their very nature, almost always superseded by the time those same ambitious youths reach middle age. The gradual onset of grey hair invariably results in a series of revisions to our dreams: they become tempered, more pragmatic, while some are dropped altogether, although this is not to suggest that horizons are lowered, nor that ambition burns less brightly; instead, over time, most of us set ourselves achievable, more realistic goals.
With a bit more time on our hands, we also find that we can tackle projects in which it would have been impossible to participate during our youth. A few years ago, for example, I recruited three mates to join me in a charitable relay event, running and cycling around Loch Ness, raising money to support the Alzheimer’s charity. Our bespoke event T-shirts summed up the scale of our task: Sharks v Nessie * they proclaimed. The fact that we were the team with the oldest aggregate age (well over 200) didn’t bother us, though we were determined to avoid coming last – we eventually finished in a very respectable midway position. And so began the team’s annual search for ‘activity volunteering’ – raising money by running, cycling, swimming and / or walking. Drink is almost always taken after each event.
We’re not alone. If you needed proof that baby boomers are fitter than any similarly-aged cohort in history, consider the millions of over-55s who run, swim, hike, cycle and walk for every conceivable charitable cause; no wonder a survey undertaken by a well-known insurance company found that 80% of those in the early autumn stage of life claimed to feel younger than their biological age. Moreover, almost one fifth of this age group believe this is the period in which they expect to achieve most of their life goals.
Not surprisingly, travel and self-improvement are among the two most ardent ambitions harboured by baby boomers. There’s also a large number of folks who wish to display their nonconformist streak by acquiring a sports car or motorbike.
Volunteering rates highly among boomers – charity shops and other institutions couldn’t function without them – as does raising money for charity, getting involved in local drama groups and choirs, or joining the group that regularly tidies up the local park’s flower beds. Oh, and let’s not forget the active (and very valuable) role played by grandparents who look after grandchildren. In short, 55 has become the new 35 as more mature folks have embraced the notion that being older doesn’t necessarily mean being less active.
While we can tick-off targets once they’re achieved, it could be argued that we should also constantly update our ambitions; having a list of unfulfilled goals is a good thing because the presence of a catalogue of realistic targets acts as an incentive to tackle and endeavour to achieve what we’ve identified as plausible aims.
Of course, the abiding sense of realism that comes with middle age reminds us there can be numerous obstacles to overcome as we pursue a specific goal, the largest of which is money, or rather the lack of it. Interestingly, however, almost one in three people aged 55 and above maintain that it is a lack of time, not cash, that prevents them from achieving their goals.
Conjuring money up from nowhere is, as every adult knows, impossible. The sure-fire tip in the 3.30 race at Newmarket that someone mentioned in the pub last night invariably turns out to be a three-legged donkey and did you know that you have more chance of being decapitated by a Frisbee than winning the Euromillions jackpot?
Thankfully, this dollop of realism fails to supress our ambitions. Wouldn’t it be great to top-up the pension or build an extension, travel more or give the children a leg-up onto the property ladder?
Well, of course it would. Up until fairly recently, the only way of doing this was to sell up, downsize and pocket what was left over after estate agency and legal fees, plus Stamp Duty and the rest. For many folks, downsizing remains an excellent, if expensive, idea, but not everyone wants to move house and sever ties with friends, neighbours and fond memories often accumulated over decades.
Last year, a survey found that, “Only 4% of respondents indicated they had released equity from their homes to give themselves a better quality of retirement, despite the fact that the over-55s are sitting on more than £1 trillion in housing wealth.”
One trillion pounds in ‘hidden’ property wealth is an unfathomable sum of money and it’s fair to say that there are millions of people who, for one reason or another, never consider equity release, or else they’re wary of it ostensibly because they don’t know enough about it and the benefits it can deliver for older homeowners. However, specialist equity release advisers can help homeowners aged 55 and above access a percentage of their accumulated property wealth in order that they may fulfil their ambitions. Furthermore, the funds they release are tax-free.
The reaction of many readers who have worked a lifetime to enjoy retirement and fulfil those burning ambitions might be ‘Why not?’ Or at the very least, ‘Let’s investigate this further’.
Several other features of equity release are worthy of note. For instance, homeowners are free to do whatever they like with the tax-free funds released from their property. And with a lifetime mortgage, the most popular method by which equity is released, they’re guaranteed to retain full ownership of their home for life – or until they move into permanent residential care. They can also be assured that they will have the option to never have to make any monthly payments, however making ad-hoc voluntary payments can certainly help the kids future inheritance.
A lifetime mortgage may reduce the ultimate value of your estate and its important to note it could affect your entitlement to means-tested state benefits, and this is why specialist advice is a mandatory requirement by the Financial Conduct Authority.
However, the combination of tax-free cash, the option of no monthly repayments and a guaranteed home ownership means that equity release could prove the answer to those wishing to start working on fulfilling their later life ambitions before it’s too late.
If you would like to speak to one of our expert advisers you can call direct on 0800 088 5937, or you can find further information on the award winning Equity Release Supermarket website.
