It may feel as though the budget and announcements about winter fuel payments and pensions are all doom and gloom. However, if you’re over 60, and considering moving to reduce your expenses, there are options available to you.
So, what could the recent budget mean for you if you’re over 60 and living on your pension?
In a relief announcement, the government stated that the pension triple lock is safe until at least 2030. However, with no added support measures introduced, pension stability could be affected by changes to inheritance, inflation and increases to Capital Gains Tax (CGT).
The reality is that while pensions have increased, with other costs continuing to rise, individuals on a fixed income may struggle to cover these escalating charges.
Rising inflation affects everyone, especially those on a fixed income, hitting the affordability of home-related costs such as property maintenance, and purchasing groceries
Increased energy bills may be a source of concern as no specific fuel or energy bill grants or schemes were included in the budget
A possibility that increased costs for services and products will be passed to consumers to cover minimum wage and employer National Insurance Contribution (NICs) increases, potentially adding to growing home-related running costs.
The Inheritance Tax Allowance has been £325,000 since 2009. The decision to freeze it at this rate means that more estates will be subject to paying Inheritance Tax given the rising value of existing and new properties. With a Home for Life Plan you could gift your loved ones with an early inheritance and boost your savings to enjoy a financially secure retirement as well as move to a home suited to your current and future needs.
The rental market has been experiencing considerable strain for several years, with many landlords choosing to sell their properties or reduce investment in the buy to rent market. This has meant an increased in monthly rental costs and a reduced supply of available properties. This has impacted many pensioners who cannot afford to buy outright or continue to rent. The Home for Life Plan offers an alternative to renting, providing you with the ability to secure your ideal home for up to 59% less than the listed market price*.
While additional funds for spending on health and social care was announced in the budget, access and quality may not improve as much as is needed with a rising ageing population. Those who rely on social care may still face limited access to the support they require. With a boost to your moving budget from the Home for Life Plan you could put aside funds to ensure you are well cared for should the need arise.
Stamp Duty costs are due to return to pre-September 2022 levels after the 31st of March 2025. An extension on this allowance may have eased burdens on those who were looking to downsize. If you want to avoid paying the increased Stamp Duty, now is a great time to start planning your move. Reach out to our team today to find out how the Home for Life Plan could help you secure your next home.
If you are using investment gains (such as shares) to boost your finances during retirement, increased Capital Gains Tax (CGT) may impact your income. A Home for Life Plan could be the ideal alternative for you to selling investments, leveraging equity in your property when moving and creating savings to help fund your retirement.
Though increased GCT, changes to inheritance tax, lack of future pension guarantees and rising living costs are a concern, the Homewise Home for Life Plan is an affordable solution that could help you to move to a property that suits your needs, whether you’re looking to downsize, upsize or move closer to loved ones. A unique option available to the over 60s, every Home for Life Plan is tailored to your individual needs whatever your property requirements.
If you would like to find out how much your moving budget could be boosted by, try our online quick calculator. For more information about the Home for Life Plan and how it could help you to achieve your property goals, get in touch with our team today.
*A Lifetime Lease can be purchased through the Homewise Home for Life Plan; the cost of a Lifetime Lease is always less than the market value of the property. Savings range from 8.5% to 59% for freehold properties with 0% safeguarded; savings may vary for leasehold and retirement properties. The saving received depends on the customer’s age, personal circumstances, and property criteria. Only available to those over sixty years old. Terms and conditions apply.