DevDosh Ltd concerned as more and more of the UK population are living longer and longer there is a need for pension performance to reflect this and provide ample returns enough for people to live out their days in comfort.
The number of people selling their homes to gain capital to provide funds for long-term care is on the up, with many seeing poor returns on the proceeds from the sale of their property.
Thousands of people every year sell their homes to help cover the cost of long-term care, but often end up earning paltry returns on the proceeds.
It is no secret that residential is an important but expensive business with people facing average fees of between 50,000 GBP and 93,000 GBP dependent on their location within the United Kingdom, according to recent search which DevDosh Ltd got by life insurance and pension company Royal London. This could amount to anything from 18% to 56% of the value of the average house.
Correct investment of any UK property sale is of paramount importance.
Anna Bowes, director at independent savings advice website Savingschampion.co.uk, said:
“It’s important not to leave proceeds from the sale of your home with your high street bank unless you are expecting to use it in the very short term because you can earn much more interest elsewhere.
“If your home is being sold in order to pay care home fees, earning the best interest becomes even more important – and it probably means that some of the money can be tied up, which means gaining access to even better rates.
“The best one-year fixed rate bonds are paying up to 1.85% so on a balanced savings portfolio of £800,000, including £500,000 in one-year fixed rate bonds, this could produce up to £12,650 per year in interest. Not enough to pay the care home fees but something to protect the capital as much as possible.”
DevDosh Ltd believes with the current interest rates savers have never seen such poor returns so correct investment is where you will achieve the best results, rather than a few paltry pounds from your bank.
For example, if you received £800,000 from the sale of your home and left it in a NatWest Instant Saver account earning 0.01%, you would earn just £6.67 in interest a month before tax. However, if you put that money into one of the best-paying easy access accounts currently available, the National Counties Building Society 1st issue Classic Saver paying 1.12%, you would earn £747 in interest every month.
For more information on how best to put your UK property sale proceeds to work and see annual returns of 10% please visit DevDosh Ltd today.