Stretching your budget further
Retirement can be a stressful time when it comes to finances, especially if you have outstanding debts which need to be paid off each month.
In a nutshell, you can borrow a lump sum against your house to consolidate any debts and leave a little left over in the pot for enjoying your retirement. You only pay interest each month, which means that you can easily budget for one interest payment instead of the larger individual payments which you used to make for credit cards and unsecured loans.
As you are paying off interest only, the lump sum is only paid off when you die and the house is sold, with any remaining money going to your estate and children. The kids still get most of the inheritance – and you get to stop worrying.
Easier to manage, the retirement home plan means that your home is working for you – retirement is a time when you are supposed to enjoy yourself and let your hair down a little, not a time when you should be worrying about money.
In essence, then, this type of plan allows you to budget more easily and potentially reduce monthly payments. You can find out more useful information about this retirement plan by doing an online search.