Reaching retirement age should be the beginning of a quiet life full of travel after years and years of work. The problem is that in most cases it is not like that, just the opposite. It supposes the beginning of a stage where the income goes down when leaving to work and with the collection of the pension of retirement is not sufficient to pay the medical expenses and of attendance that are multiplied year after year. In fact many pensioners are surprised to have to resort to loans for retirees after years of work and savings. Because the life expectancy is getting longer, the retirement age is also increasing.
And soon we will see 65 years as a retirement age, 75 years or even more. All this causes that once retired, our elderly have more problems of health and dependence than in past times. And all that implies higher expenses, and more taking into account that the pension and health system is becoming less sustainable. As there are fewer and fewer contributors due to the aging of the population and unemployment, there is less and less money in the Social Security fund to cover medical expenses and the payment of millions of pensioners. And it is a fact that in Spain the population is aging, which implies an increase in the number of retirees and the elderly. This is a challenge that raises many difficult-to-answer questions about the viability of the State’s public health and pension system.
That is why banks recommend people of working age to contribute money to accounts and pension plans. Because it is convenient to think about the future and more with the panorama that we have described. But what about the elderly who are already retired? Many of them do not have large pensions, nor an account with big savings, so they live with the amount of fair money. The problem is that if their children are unemployed, they can hardly contribute to paying the expenses and medical services of their elders.
When to apply for quick loans for retirees
Even in difficult situations, it is the case that a whole family, parents and children, are the ones who live with the only money from a pension for retirement. In these cases, the only financial solution is to seek personal loans for pensioners in order to have a cushion of money to deal with that situation.
We are therefore facing a transition moment for our elders. The demographic changes with an aging population, together with a high level of unemployment among the youngest, make the pension system not permanently viable. People who are still at the beginning or half of their working lives have time to save and look for savings accounts and supplementary pension systems, such as private pension plans offered by banks and financial institutions.
But those older people who are no longer of working age, and who only have a pension for retirement may have to resort to personal loans as urgent financial solutions depending on their situation. If, for example, the applicant is a pensioner with a high pension and good health, they will have no problem to cope with their current expenses, even to help their unemployed children who are without payroll. But in the case of retirees with problems of dependency or serious illness, they will have financial problems, even charging higher pensions.
Today a nursing home can be in an amount of money over 1500 euros per month. Although the maximum monthly expenditure can even exceed 2000 euros, for cases of elderly people with serious health problems. To which should be added other expenses in the event that the pensioner also maintains a house in vacant property. In summary, an elderly person with health problems may need more than 2000 euros per month to survive. Assuming your children have a payroll and earn enough money if they are not unemployed. Because otherwise the monthly money that would have to count would be 3000 euros or even more.
Money for retirees with a loan or credit card
As you can understand are very high amounts for most of the retirees and pensioners in this country. And despite dependency or other assistance from the State or the Autonomous Communities, the problem of financing for our elders exists. To avoid these money problems of the retirees, and that they see as their main source of income disappears when they stop working. Products such as the reverse mortgage were created, from which many retirees had almost no information. A financial product designed to give money complementary to retirement pension, in the form of monthly income, and that had a very competitive interest rate.
And although at the time of the application there were several requirements, the most important was that the older person had a home ownership. Because in a rising real estate market, the value of homes grew, so banks were willing to keep their clients’ properties in exchange for paying a lifetime monthly rent to the owner of the house. That is to say to the retiree, that while he lived he could see his monthly pension supplemented by 1000 or 500 euros thanks to this type of mortgages and without the need for an endorsement since the house was a sufficient guarantee.
Undoubtedly a good financial product that unfortunately had little success for two reasons: on the one hand the refusal of the children to transfer the ownership of the house to the bank in exchange for the monthly rent for their retired parents. As long as the children were not able to return the money. And on the other hand by the outbreak of the housing bubble that caused the price of housing and other properties to fall. So the basic requirement on which underpinned the reverse mortgage, the increasing value of mortgaged housing as collateral, fell by its own weight.
Faced with this panorama of funding so bleak, one of the key questions is how can a retiree deal with current expenses plus other expenses such as drugs, day centers, or homes for the elderly ?. Fortunately there are products, such as mortgages and cards, that offer a solution regardless of pensions and years worked and quoted, even for the most difficult and urgent cases.
Although given the age, normally more than 65 years old, except in cases of early retirement, two cases of loans must be differentiated. That is, private financing solutions, which allow you to obtain a cushion of money to pay for medical or unforeseen payments. In this type of personal loans the lender, usually a bank or a credit, in addition to the typical risk of default is another problem, will the customer live enough to pay the amortization of the total capital plus the interest owed ?.
As the risk is high, and more if it far exceeds the retirement age, it is normal that within the requirements to grant a loan include asking the customer guarantees ( mortgages or guarantees of the children) or insurance to get the personal loan. It is also usually used as a solution to grant the financing with two holders to be able to guarantee that the money will be returned within the established period. Putting as customers both the retired person and a child of working age. Thus the lender eliminates the risk of death of the holder when he exceeds 65 years or even 75. And although it is best to contact our bank throughout life to request information and conditions of interest rate and maximum amount of money. In general terms we can speak of two well differentiated cases:
- Personal loans for retirees under 75 years of age: in this case, for example, for any retiree around 65 years of age and taking into account a life expectancy of over 80 years. The most normal thing is that guarantors or holders are not necessary, as much a medical insurance that in case of death takes charge of the total payment of the debt of the personal loan. Normally the elderly usually have a paid home and do not have outstanding loans. So it is normal that the home itself serves as a mortgage guarantee so it will not be necessary to have an endorsement, usually children. And if the elderly person is in good health there will be no greater problem in granting personal loans of up to 10 years for the return of the borrowed money. In addition this type of pensioners also usually have a car in property, that each time they will be using less as the years go by. The loss of vision and reflexes causes people around 75 years of age to stop driving. So the commitment of the car would be another alternative to loans. You can even get a much faster maximum amount of money, with better financial conditions. Although this type of financing can not be requested from any bank, you will have to contact companies that specialize in pawn car hire for retirees.
- Personal loans for pensioners over 75 years: this case is more complex, because even being optimistic in life expectancy it is clear that there is a high risk of death. Therefore more than life insurance, for retirees of this age it will be necessary to have additional guarantors or holders, who are usually the children, so that in case of death they can take charge of the payment of the personal loan. Either at expiration, or refinancing the term until the retirement age of the youngest holder reaches. As in the previous case, it is normal that the house must be provided as a mortgage guarantee. Since it is one thing to have a person who takes charge of the monthly payments of the loan, in concept of amortization of the capital plus the corresponding interests, and another thing is to have the borrowed amount guaranteed. In these cases it is rare to get loans for retirees over 3 or 5 years as a term of return of money.
But what about pensioners and pensioners without children and without a property? In this case, both due to the high age and the lack of guarantees, as it can not provide guarantees for the children or a mortgage on a home, the best financial solution and especially if you need urgent money now, is to resort to quick or small loans. personal credit cards. That is, making a request for financing outside the banks without paperwork and given the high interest rate is granted quickly and even for an applicant in a situation as difficult as described. Of course, request information about the amounts and conditions of return because these are usually also fast. For example 100 euros to be returned within 30 days or 300 euros to 15 days.