Speak to an expert
Michelle is an award-winning chartered financial planner who holds the designation 'Fellow of the PFS' demonstrating her commitment to maintaining the highest standards of knowledge, ethical conduct, and professional practice. Michelle is also an accredited member of the Society of Later Life advisers. Michelle offers a fully personalised service tailored to each clients individual needs and goals, using an approach that was recognised and honoured by the Women in Financial Advice awards in 2021. Clients working with Michelle can expect a high level of professionalism, integrity and a lasting relationship built on trust and open communication
Michelle Boakes
Chartered Financial Planner
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How does it work?
With a home income plan, equity is released through a lifetime mortgage or a home reversion plan and is automatically invested into an annuity that is built into the plan, to generate an income for life. A cash lump sum may be available in addition to an income, but the amount may be restricted.
An annuity is a plan that guarantees a series of payments in exchange for a cash lump sum. The income you receive will depend on prevailing annuity rates, your age at the outset and your gender.
The advantages and disadvantages of home income plans largely depend on whether the money is released through a lifetime mortgage or a reversion plan, however annuities have their own set of pros and cons:
Free Introductory Meeting
We offer a complimentary introduction meeting to understand your existing plans and your financial objectives so that we can offer you the right advice and service that meets your objectives and your preferences.
ADVANTAGES
- A lifetime annuity guarantees that the income will be paid for as long as you live.
- Income can usually be taken on a level or increasing amount each year.
- With a home income plan annuity, you can usually get a higher income than would be payable from a standalone annuity.
- You may be able to take some lump sum in addition to the annuity.
- The older you are the higher the income.
- As interest is repaid automatically, the reduction in the home's value is mitigated.
Our personalised evidence-based recommendations that build on your current plans are achieved using robust research. We investigate different financial scenarios so that you can be confident in achieving your objectives.
DISADVANTAGES
- You are committed to an annuity as a means of extra income, leaving you no choice of alternatives.
- You can lose out by taking a lifetime income if you were to die soon after the plan is completed unless the plan includes protection against this.
- You do not have the option of allowing the interest to build up, so the reduced annuity may not improve your financial circumstances greatly.
- Home income plans involve borrowing against your home and may work out more expensive in the long term than downsizing to a smaller property.
- Home income plans may affect your entitlement to state benefits and grants.
Get in touch
When we tell you about a fee, you will always receive a clear explanation of: The total fee, the advice service it relates to, how it's been calculated, when you need to pay it and your payment options.
Warning Text
EQUITY RELEASE (INCLUDING LIFETIME MORTGAGES AND HOME REVERSION PLANS) WILL REDUCE THE VALUE OF YOUR ESTATE AND CAN AFFECT YOUR ELIGIBILITY FOR MEANS TESTED BENEFITS.
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ESTATE PLANNING IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
