How to avoid falling into the Interest Only mortgage trap when you retire

No surprise as interest rates on hold for another month_istockNew research, from the Independent on Sunday newspaper, has found that more than a quarter of a million people with Interest Only mortgages could retire by the end of this decade whilst still having the debt outstanding. Popularity of Interest Only mortgages Interest Only mortgages were very popular in the 80’s and 90’s when they were often set up with Endowments or ISAs (Individual Savings Accounts) as repayment vehicles. However, ...

Falling Annuity rates help push up retirement age

According to new figures release by the Office for National Statistics (ONS) the average retirement age has risen over the past few years. The report shows that between 2004 and 2010 the average retirement age for men rose from 63.8 years to 64.6 year. For women the jump was larger, from 61.2 years to 62.3. This trend is expected to continue as the state pension age increases, pension fund values remain volatile and Annuity rates drop. Later retirement There are a number of reasons why the average retirement age is increasing. The state pension age is rising, particularly for women, which in turn ...

Public sector retirement age to be linked to state pension age

In a speech made yesterday Danny Alexander, Chief Secretary to the Treasury, (left) has confirmed  that the retirement age for public sector pensions will in future be linked to the state retirement age. In addition Mr Alexander also confirmed that member contributions will have to rise, although he went on to say that these rises would be capped for the low paid. He also confirmed that existing benefits, already accrued by members, will be protected. Mr Alexander said that public sector pensions should be "affordable and sustainable but still amongst the very best available". He went on to say that "It is ...