EquityBower offer advice for pensioners who have been hit by Record Low Base Interest Rates

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Bower Retirement Services say that savers and pensioners have been hit the hardest since the Bank of England cut the base interest rates to 0.5%.

This month marked the third year since the Bank of England cut the base interest rate to record low 0.5%. With the “emergency” rate stubbornly remaining at this level for longer than initially anticipated, pensioners and savers who have been depending on the income from their money have been feeling the squeeze.

During March 2007 and March 2009, the average rates on offer across a range of popular products declined sharply. Although the last three years have seen these rates stabilise, the best ones have still continued to fall slightly. Pensioners have been particularly hurt by this situation, as they need to work harder to ensure a decent income.

Saga director-general Ros Altmann believes that older people have been hit badly by the “toxic combination of falling interest rates and rising inflation,” with the standard saving rate having fallen from 6.52% in 2008 to 2.78%. This, compounded by the fact that low interest rates have reduced pension annuity rates, has led to over a million pensioners purchasing an annuity that will pay less for the rest of their lives.

The picture may be bleak, but BRS EquityBower Retirement Services, a company who offer confidential and jargon-free equity release advice, believe that an equity release scheme can provide an excellent opportunity for the elderly to supplement their incomes.

Equity release schemes are becoming an increasingly important part of retirement planning, and can make your retirement more comfortable while opening up new opportunities. By raising money from your property as either a lump sum or regular payment, an equity release scheme will allow you and your partner to remain living in your house for as long as you would like to.

According to BRS EquityBower, there are two types of equity release schemes. There is the lifetime mortgage, which involves taking out a loan secured against your home, or there is a home revision scheme plan that allows you to sell all, or part, of the ownership of your home.

After securing an equity release, the extra finance can be used to top up your retirement income, or spoil yourselves with home-improvements or a holiday home. But most importantly, the additional income will allow you to enjoy a retirement free of money worries!

If you are over 55 and wish to know if you qualify for an equity release scheme with via BRS EquityBower, use the free equity release calculator to find out how much money you may be entitled to.

About Bower Retirement Services

Bower Retirement Services are an award-winning specialist UK equity release advice company. Fully regulated and authorised by the Financial Services Authority (FSA) to provide advice on equity release products from the whole market. Winners at the 2009 and 2011 Equity Release Awards, with Bower customers are guaranteed to receive the very best equity release advice.

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Geoff Charles