Could government default on pensions?

Posted in General

23rd April 2010

Britons may be forced to look at equity release schemes in the future, after an expert claimed that any future government may default on pension payments.

Oliver Russ, of Argonaut Capital, claims that within the next 20 years, the government will "default on state pensions, or seriously reduce the benefits and health care costs associated with those in retirement."

He goes on to state that the party leaders are "just dancing round the handbags" at the moment and claims that proposed levels of spending cuts would not get close to addressing the issue.

If Britons do need to release equity to fund any missed pensions, there are a number of options available to them, such as a home reversion plan or a lifetime mortgage. With either choice, they could use the value in their house whilst still living there.

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