If you’re one the three-quarters of over 55s planning a significant spend in the next 6 to 36 months, you might want to use the time between now and “Freedom Day” to not only research what you’re going to spend your money on, but also to compare and contrast your funding options. According to our recent research, many people plan to dip into their life savings to fund a significant spend, but is that the best or only option? Free2’s newly launched Funding Comparison helps you to explore all the options. Why not put our Funding Comparison Tool to the test?
Nearly 18 months of pent-up consumer demand is due to be released when “Freedom Day” for England dawns in July, just in time for the Summer Holidays. With the rest of the U.K. likely to follow suit soon after. According to our recent research, consumers have big plans ahead; our survey showed that three quarters (77%) of people over 55 have major expenditure plans (£15,000 and over) in the coming 6 to 36 months.
As people have been stuck in their homes, their instinct appears to be to either improve or renovate their home environment (38%), or to get out of the house as much as possible with either a new car (25%) or an extended holiday (21%).
There are so many options out there for things to do, as so-called Freedom Day draws near. For example, aside from just doing up a kitchen, there’s a slot that can be done to add value to a home, from loft extensions to a wet room bathroom, to adding a granny flat to bring loved ones nearer. Extensive travel might not be on the cards just now, but next year looks likely that a number of exciting destinations will open up. While those who’ve run the gamut of Netflix in Lockdown, might want to go exploring in a classic or luxury car, or fully indulge a lifelong hobby. Each of these ideas has its own appeal, and potentially significant cost. So, what’s the best way forward?
How will you fund it?
To fund a spend of more than £15,000 the vast majority of over 55s surveyed (70%) plan to use their savings. But is this the best option in these volatile times? Once a lifetime of savings has been spent, it’s exceedingly difficult if not impossible to replace once you’re older. Any you may prefer to keep your rainy-day fund precisely that purpose, that is to say, for emergencies, not aspirational spending on “nice-to-haves”.
As a mindful consumer, should you be asking yourself deeper questions? Such as, where to access sources of funds? And, should you look at your options, say drawing down cash from a flexible pension, or weighing up the pros and cons of equity release, or taking advantage of property market buoyancy to downsize?
To help consumers review their funding options and avoid being left with financial issues later in life, at free2, we’ve launched an easy-to-use funding comparison tool that shows users ways they might choose to fund their plans. It outlines the potential positives and negatives of each option, and highlights areas where they might need professional financial advice. The funding comparison tool presents all the possibilities in one place, allowing you to research the main options quickly and efficiently before deciding your next steps.
Alongside launching the Funding Comparison Tool, we’ve made the Over 55s Unsecured Loan more accessible for more people at this stage of life. The loan is for people over 55 who have spare monthly income but don’t want to use their property as security for a loan, raid their nest eggs or dip into their pension pot. To see if you’re eligible for an Over 55s Unsecured Loan arranged by free2, get started on the funding comparison tool and have all your options ready for when Freedom Day dawns.
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