Equity release solution for pensions cut

Posted in Equity Release Video News

12th July 2010

Millions of private sector pension holders are likely to see their retirement income cut, so they may wish to get a lifetime drawdown mortgage to provide them with an extra income.

The cut will come as a result of final salary pension schemes being linked to the consumer prices index (CPI), rather than the retail prices index (RPI).

As CPI is generally lower, accountants KPMG estimate that pensioners' retirement income could be hit by up to 25 per cent.

This could lead to them looking into equity release plans, such as a lifetime drawdown mortgage.

This form of equity release extracts value from the home and hands it to the homeowner in the form of regular payments.

To find out how much you could boost your pension by, consult an equity release calculator today.

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