Pension plans cause to release equity?

Posted in General

14th April 2010

Labour, the Conservatives and the Liberal Democrats have all pledged to re-link the basic state pension in line with earnings, rather than prices.

The move will happen within the next two to five years and could lead some Britons to look at an equity release scheme if the gap between earnings and prices is too wide.

One option would be a home reversion plan, where people effectively sell their home to a reversion company, but are able to stay living there for the rest of their lives.

This way, they don't have the trouble of moving, but get the benefit of money for their house.

Restoring the link between pensions and earnings is expected to cost £2bn a year by 2015, according to the Treasury.

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