If you’re planning a significant spend in the next 6 to 36 months, then you’re in good company; our research tells us that some three-quarters of over 55s are planning to do just that. But, instead of thinking only of what you’re planning to do, you might want to use the time between now and “Freedom Day” to think about how you’re going to fund your next big spend, by comparing and contrasting your funding options.
Whenever you go online these days, or even when you turn on the telly, it seems there’s always someone pushing you to search and compare their products. Whether they’re selling you home, car, contents or travel insurance, energy and other household utilities, or whether it’s cars, houses, hotel rooms or holidays, it seems there’s a comparison site for almost any consumer product or service available.
But it occurred to us that perhaps we don’t need more sites comparing what you’re spending your money on, but more effort is needed in comparing how to raise the funds.
In a recent survey we commissioned*, we learned that more than three quarters of people over 55 are planning to make a significant expenditure (£15K or more), over the next 6 to 36 months. Some 70 percent of these people said that they’re highly likely to fund their spending from their savings.
Is raiding your nest egg in retirement to fund your next big spend really the best idea?
Thinking about this option; on the positive side, presumably you already have the money available, and depending on where your savings are held, it may be possible to access the funds you want without paying tax charges or upfront fees to your financial services provider. Conversely, on the minus side, raiding your savings could leave you exposed in future without money you need to pay for emergencies and don’t forget to factor in loss of future interest. It’s also true that savings that have been carefully accrued over many years can be extraordinarily difficult to replace in later life once they’re spent, so is this really the right thing to do?
What are the other options?
The most obvious include taking tax-free cash from a pension, downsizing your home, cashing in assets or investments, or the various alternatives of equity release, or taking out an unsecured loan.
How do you decide?
Our Funding Comparison Tool might help, giving you the plusses and minuses behind major ways of raising finance over 55. It also points to areas where you may need to seek professional financial advice. It’s free, intuitive, easy-to-use, and only takes a few minutes to receive your options ranked by your priorities, with plus and minus comparisons for each.
To see your options for raising fund for your next big spend and have all your options ready for when Freedom Day dawns, try our free funding comparison tool today.
The Funding Comparison Tool is not intended to provide personal financial advice and any action taken will be your own responsibility. If in doubt, please seek advice from a professional Financial Adviser.
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. Terms & Conditions apply. www.free2.com