Equity release could remedy bad advice

Posted in General

13th April 2010

Many Britons could find themselves needing to find a regular additional income to top up their pension to bridge a gap caused by bad advice.

The Financial Services Authority (FSA) is thought to be on the verge of penalising six major pension providers who are believed to have given their customers bad advice, which could threaten their financial freedom in older age.

The FSA have found many cases where advice has been given to increase short-term gains, with long-term consequences. If they hand out the penalties, consumers could be in line for a payout of around £150m.

However, this may not cover the whole amount lost out on, so some homeowners may need to consider equity release. They could take this in the form of a regular additional income, or as a one-off lump sum to fund a special purchase.

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