Travel Reference
In-Depth Information
You've talked to your employer, perhaps also worked out what you hope to do - there are
plenty of organisations to help you plan your chosen activities in the various sections in
this topic. The next crucial question is finance.
Obviously the amount of money you'll need depends on where you want to go, what you
want to do, and how long you want to be away. At this point, drawing up a rough budget
for how much it will cost would be a good idea. (See
Chapter 2 - Finance
, for a checklist).
Once you have this it's worth talking to your building society or bank to see whether they
have any schemes that can meet your needs.
While banks often have student and graduate advisers who can advise on what to do about
everything from travel insurance to suspending direct debits and deferring loan payment,
they don't seem yet to have reached the stage of having advisers
specifically
for career
breakers. They are, however, increasingly aware of the trend to take a career break and may
well be able to use their experience of advising younger gappers to help you think the fin-
ances through.
One recent survey amongst older people in the UK revealed that a large majority are ex-
tremely pessimistic or fearful about the quality of their lives in old age. A significant num-
ber were taking the view that, if their old age was going to be so grim, why not have one last
adventure? Consequently, they were using annuities and equity release or lifetime mort-
gages to unlock money from their homes to boost their retirement income and pay for such
adventures.
This might seem like a good plan. However, there have also been many reports of schemes
offering to buy people's homes and allowing them to rent them back for their lifetimes,
only for them to be evicted after a few months or to find 'hidden charges' that meant they
saw little money at the end of it. So beware! Read the small print
very
carefully.
Some companies offer lifetime mortgages, where you can release the value of your home
and live in it without paying anything until you die, when the company will recover its
money from the sale of the home.
Individual circumstances vary and if you feel you are 'asset rich but cash poor' it may be
tempting to consider such options. You should only consider such a scheme with a reput-
able company and if the scheme includes protection against negative equity. We would
strongly advise that if you are thinking of doing something like this you consult an inde-
pendent financial adviser.
Maximise your funds: the chance for a good clear
out
