Retirement Annuities

Retirement annuities or home income plans turn part of the value of your home into an income for you until you die. When you die, part of the value of your home goes to repay the debt.

You normally have to be at least seventy to participate. A couple normally needs a joint age of 189 and both partners must be at least seventy. The older you are, the better value these schemes seem.

They are particularly good value for people who pay no tax, who lose some age allowance because their income is above £9,800, or who pay higher rates of tax.

http://www.hmrc.gov.uk/pensioners/pension-retirement.htm

http://www.which.co.uk/money/retirement/guides/annuities-explained/buying-an-annuity/

The plans involve three steps. First, you take out a mortgage on your home.

That simply means that you borrow an amount from a building society or insurance company secured on the value of your home. Normally, you can borrow up to £120,000.

While you live, you just pay the interest on this loan. When you die, the capital is repaid from your estate. For a couple, that does not happen until the second member of the couple dies.


Other webpages of interest - Money You Borrow

or How Much Will You Get?

Money You Borrow

/retirement/pensions/income/advice/money-you-borrow.php... see: Money You Borrow