Release equity to cover shortfall

Posted in Equity Release Video News

7th June 2010

Members of the Local Government Pension Scheme (LGPS) may want to consider equity release as it transpires that their pensions lost 20 per cent of their value last year.

Whilst the portfolio has strengthened a little this year, Chris Hull of consultancy firm Mercer warns that there is still "a funding shortfall".

Surrey pensioners may be especially tempted to release equity from their often higher-valued homes, as their county council's pension fund was revealed to have a deficit of £1.1bn.

This comes as London Pension Fund Authority head Anthony Mayer claimed that two thirds (64 per cent) of members would receive less than £20,000 a year.

The money won't go as far in that region as it would elsewhere, so homeowners may want to take advantage of having some of the highest house prices in the country and enter an equity release scheme.

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