Many people approaching retirement may find themselves on the same boat without formal arrangements. Some may have had problems all their lives, while others may have run out of resources due to recent financial problems.
This is the case of Sachy Taylor-Cox, a 52-year-old PR director who once hoped to buy a house.
Instead, she was a life tenant and currently lives in a two-bedroom cottage in the Cotswolds.
She told The Times that she would like her to manage her finances better, to save on the down payment.
Sacha, who confessed as a “party girl” in the 1990s, traveled the world and did not want to be held accountable.
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Some providers lend money up to the age of 75 or 80, which could help individuals extend maturities and make it easier for them to repay.
Pete Mugleston, CEO of Mortgage Advisor, said securing a mortgage as a freelancer is more common than people think.
He also recommended an agreement with a joint debtor, the sole owner, where a family member could help another family member to claim a mortgage and installments.
Mr Mugleston added that this option may be a good choice for first-time buyers, but it can also help individuals protect property and offer useful tax benefits.
However, for those who have decided that real estate is out of their reach, it may be a better option to target retirement goals.
The government-sponsored savings website MoneyHelper has warned those who do not have a pension of three options:
- Retire later
- Start saving more
- Reducing expectations of what a person will be able to afford in retirement
According to the website, those who plan to retire through the retirement can enjoy key benefits.
For example, tax breaks can help Britons build a pension faster.
As earning £ 50,000, Ms Taylor-Cox was able to receive a basic tax credit of 20 percent.
Even those who don’t earn enough to pay taxes can still pay contributions up to £ 2,880 – with tax breaks of £ 3,600.
Understanding the right to a state pension can also be the key to creating a safer later life.
Lindsay Hallford, a financial adviser at The Private Office, told The Times: “If there are any gaps in her national insurance record, she may be able to volunteer to increase her entitlement.
“He can also check online at what age he will receive a state pension.”