Equity release could fill pension black hole

Posted in General

14th April 2010

Taking out a lifetime mortgage could be the solution for those Britons who find that their pension plan is in deficit.

This would allow them to release equity from their home as a means of extra income.

To find out just how much money they could extract from their house, they could use an equity release calculator.

This comes after figures from the Pension Protection Fund (PPF) showed that the 7,400 pension schemes had a total surplus of £300m last month, compared to a combined short-fall of £15bn in February.

The PPF attribute this to rising share prices causing assets to rise above the cost of payments.

Despite this overall improvement, over two-thirds (68.5 per cent) of pension schemes are in deficit.

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