Equity release as black hole widens

The private sector pensions black hole is wider than it was last spring, leaving many to consider equity release as a means to making ends meet.

Last March, the deficit stood at close to £50bn (£49bn), but has since more than trebled to £160bn, according to consultancy firm Mercer.

This means that more people will need to look into home reversion plans or lifetime mortgages to ensure that they have a comfortable retirement.

Deborah Cooper, a pensions expert at Mercer, remarked: "Events in the wider economy over the past couple of years have highlighted the need to be prepared for the worst."

BT and British Airways have two of the largest deficits, with £9bn and £3.5bn of pension commitments respectively.

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