image

Over the hill? Over the limit? Overstated?

Why is it that, just as you’ve paid off your mortgage and you’re more financially settled and secure, that banks and other key financial institutions start looking at you differently?

Sure, you may be a little older, but chances are you’re also more financially secure. Perhaps you’re drawing down a company pension or annuity, which are after all, guaranteed forms of income. And you may have paid off your mortgage. So you’re not high risk. But why do many financial services companies insist on treating you that way and start limiting your options?

There are numerous ‘established wisdoms’ – or unhelpful, outdated stereotypes – that are up to be challenged around the over 55s.

  • Over 55 is old and the over 55s are technophobes – Really? Many of the over 55s are the baby boomers, and people are generally living longer, more actively into later age groups. According to the ONS, since 2011, the 65 to 74 years age group has seen the largest increase in recent internet use, with 83% engaging online.* While banks report a significant surge in uptake of online banking, following lockdown.** And 70% of over 55s own smartphones.***
  • When you retire equity release is inevitable – Is it? There are many decisions before you when you retire, and Equity Release remains a popular and important option, but as we’ll cover in our next article, it’s one that may be best taken after financial advice.
  • Flexible pensions are always flexible – This may be true to a degree, but it’s not the full story. You may be able to draw down the sums you want from a flexible pension, but the implications to your remaining pension pot, your tax bill and the growth rate of your existing pension all need to be considered.
  • You should always take your tax free cash from your pension – Again, your financial adviser may give you good reasons to delay and take your tax free lump sum when it will have the maximum benefit, or they might advise you to have a guaranteed income from an annuity. Flexible pensions have their benefits, but they have potential drawbacks too.
  • Lending to over 55s is too risky – I think we’ve debunked that one already. Why wouldn’t institutions want to lend to people with significant assets and a guaranteed form of income? This could be from a pension, from a final salary scheme or an annuity.

free2, free thinking finance

At free2, we’re here to challenge these outdated depictions of the over 55s. As a dynamic new brand in financial services, we’re dedicated to creating new financial freedoms for people aged 55 and over. Our first offering  – the Over 55s Unsecured Loan, provides people wishing to raise a lump sum with an alternative to spending their savings, withdrawing taxable amounts from their pensions or borrowing secured against their home.

If you’re going to plan your way forward, wouldn’t it help if you had a guide?

As part of our aim to help the over 55s learn and discover new information to help them plan financially for the years ahead, we’ve commissioned a new comprehensive publication; the Guide to managing money for the over 55s. Written by a Chartered Independent Financial Adviser, it covers pensions; homes, loans and mortgages; savings and investments; lifestyle and family goals.

Register with us and download your copy of the free thinking Guide to managing money for the over 55s.

 

 

Important Note

Free2 Limited (trading as free2) is an Appointed Representative of RS Consumer Finance Limited (RSCF) which is authorised and regulated by the Financial Conduct Authority (the FCA). free2 is a credit broker, not a lender, and will only offer loans from RSCF – an offer of credit is subject to status and affordability. Example Loan: 60-year-old non-smoker, £30,000 over 10 years with fixed monthly payments of £359.05, interest rate 7.69% and an APR of 7.97%. Terms & Conditions apply.

Sources:
*  https://www.ons.gov.uk/businessindustryandtrade/itandinternetindustry/bulletins/internetusers/2019 and https://www.telegraph.co.uk/money/life-after-50/tech-savvy-silver-surfers/
**  https://www.telegraph.co.uk/news/2020/05/11/over-65s-shopping-online-twice-much-lockdown-forces-get-tech/
***  https://www.statista.com/statistics/271851/smartphone-owners-in-the-united-kingdom-uk-by-age/
ADVERTORIAL
Disclaimer
The contents of this article are for reference purposes only and do not constitute financial or legal advice. Independent financial or legal advice should be sought in relation to any specific matter. Articles are published by us without any knowledge or notice of the circumstances in which you or anyone else may use or rely on articles or any copy of the information, guidance or documents obtained from articles. We operate and publish articles without undertaking or accepting any duty of care or responsibility for articles or their contents, services or facilities. You undertake to rely on them entirely at your own risk, and without recourse to us. No assurance of the quality of articles is given or undertaken (whether as to the accuracy, completeness, fitness for any purpose, conformance to any description or sample, or otherwise), or as to the timeliness of the publication.

Leave a Comment!

Not a member?

You need to be a member to interact with Silversurfers. Joining is free and simple to do. Click the button below to join today!

Click here if you have forgotten your password

Community Terms & Conditions

Content standards

These content standards apply to any and all material which you contribute to our site (contributions), and to any interactive services associated with it.

You must comply with the spirit of the following standards as well as the letter. The standards apply to each part of any contribution as well as to its whole.

Contributions must:

be accurate (where they state facts); be genuinely held (where they state opinions); and comply with applicable law in the UK and in any country from which they are posted.

Contributions must not:

contain any material which is defamatory of any person; or contain any material which is obscene, offensive, hateful or inflammatory; or promote sexually explicit material; or promote violence; promote discrimination based on race, sex, religion, nationality, disability, sexual orientation or age; or infringe any copyright, database right or trade mark of any other person; or be likely to deceive any person; or be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence; or promote any illegal activity; or be threatening, abuse or invade another’s privacy, or cause annoyance, inconvenience or needless anxiety; or be likely to harass, upset, embarrass, alarm or annoy any other person; or be used to impersonate any person, or to misrepresent your identity or affiliation with any person; or give the impression that they emanate from us, if this is not the case; or advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.

Nurturing a safe environment

Our Silversurfers community is designed to foster friendships, based on trust, honesty, integrity and loyalty and is underpinned by these values.

We don't tolerate swearing, and reserve the right to remove any posts which we feel may offend others... let's keep it friendly!