If you are looking for a solution to fund your retirement, you may want to consider a Home Income Plan. Homeowners over 55 have the opportunity to release equity and live comfortably in their senior years.

Retirement can be scary because no matter how hard we might try to plan, having the financial means to get through it, stress-free, can be easier said than done.

However, there may be a solution.

As experts in the field of equity release, we at SovereignBoss have combed the market, reviewed countless plans, and done the research on the latest home income plans.

Therefore:

What Is a Home Income Plan and How Does It Work?

A home income plan is when you release equity through a lifetime mortgage or a home reversion plan. The money is invested in an annuity¹ built into the plan.

A lump sum goes in and you get a monthly salary.

With a home income plan, the salary you get depends on three things:

• Prevailing annuity rates
• Your gender
• Your age

It is vital to consult a professional financial advisor before considering a home income plan as there are risks involved.

Four Pros of a Home Income Plan

• You will receive income from your annuity for as long as you live, no matter what age that is.
• You can request to increase your income annually.
• Depending on your circumstances, you may have a lump sum available in addition to your annuity income.
• The older you get, the more income you will be eligible to receive.

Four Cons of a Home Income Plan

• You cannot undo the annuity process once you have committed to it.
• If you were to die early during the terms of your income plan, then your family could lose out. Look out for plans that offer fund protection.
• Downsizing might be a better option to consider, as long-term borrowing can be expensive from an interest perspective.
• Your home income plan might impact your tax position and means-tested benefits.

Is a Home Income Plan Right for You?

Deciding whether a home income plan is the right choice depends on your individual financial situation, goals, and future needs.

While it offers a guaranteed income for life, it's essential to weigh the benefits against the potential drawbacks, such as the impact on your tax position and the irreversibility of the annuity process.

Consider other options, like downsizing, and consult with a specialist financial advisor to determine if a home income plan is the best solution for your retirement.

Common Questions

In Conclusion

With all financial products, there are always risks involved which you must consider carefully.

However, the great thing about a home income plan is that you are guaranteed to have an income for the rest of your life.

Speak to a specialist financial advisor for the right advice if you are considering a home income plan for your senior years.