Retire at 68 sooner or release equity

Posted in Equity Release Video News

20th July 2010

The government has proposed raising the pension age to 68 eight years ahead of schedule, meaning that some homeowners who want to retire earlier may want to consider equity release.

Labour initially planned to bring in that retirement age by 2046, but Iain Duncan Smith has said that increasing it sooner would ensure that the state pension is more generous.

He remarked that "the truth is deferment of one year will add one per cent to GDP and it will add up to ten per cent on your pension pot… [so] it seems silly to wait."

However, people who are not prepared to wait that long for their pension could enter an equity release scheme, such as a drawdown lifetime mortgage, in order to provide them with an income until their retirement payments kick in.

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