Equity release needed to top up pension

Posted in General

27th May 2010

An expert has welcomed the pensions plans included in the Queen's Speech, but believes more is needed – possibly through equity release schemes.

Ros Altmann agrees that raising the basic state pension is the right thing to do, she points out that if the link to inflation hadn't been broken, it would be over £140 now, rather than £132 with pension credits.

To make up the shortfall, homeowners could take on a home reversion plan or lifetime mortgage, which will subsidise their income whilst allowing them to stay in their home.

Dr Altmann has been scathing in her comments on pensions credits, saying that many miss out due to the "horrendously complex" nature of applying for them.

This has left nearly two million pensioners in poverty.

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