New rules could lead to more equity release

Posted in General

30th April 2010

People with company pensions may be forced to look into equity release schemes if their firms drag their heels over new pension proposals.

The new rules from the International Accounting Standards Board (IASB) force companies to recognise more of their pension costs in profit and loss statements.

Brian Peters from PricewaterhouseCoopers comments that a company with a £2bn pension scheme may see a reported pension cost rise of £25m. It is feared that firms will look to shave pension contributions down so the costs appear the same.

If this is the case, equity release will become a more appealing proposition for homeowners who may be seeking extra cash for their retirement.

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