AIFA Urges Government to Re-Examine Obstacles to Equity Release
Ahead of the pre-Budget report on Wednesday 9 December 2009 the Association of Independent Financial Advisors (AIFA) has urged the Government to “re-examine obstacles to equity release so that there are fewer disincentives for consumers.”
This is just one of the recommendations put forward by the AIFA in their report released on November 30 2009. If the Government heeds the advice of the AIFA it could make an equity release plan more appealing to homeowners considering additional income to support them during retirement.
Review of Means-Tested Benefits so Equity Release Isn’t Penalised
As well as a review of pensions legislation the AIFA hope the Government extends the ‘Train to Gain Scheme’ to QCA Level 4 and want the Government to undertake an independent review to try and restore a savings culture in the UK.
However, the equity release market will be most encouraged by the AIFA’s wishes for the Government to review pensions legislation including the capital disregarded for retirement means-tested benefits so that equity release is not penalised.
Chris Cummings the director general of AIFA said: “The level of capital disregarded for retirement means-tested benefits should be reviewed on a regular basis to ensure the rules do not penalise equity release. And ministers should re-examine obstacles to equity release so that there are fewer disincentives for consumers.”
A Chance to Make the Most of an Equity Release Plan
These recommendations could allow homeowners to make the most of an equity release scheme, particularly if means-tested benefits weren’t affected by taking out a plan.
Dan Baines, Sales and Marketing Director at Age Partnership, said: “We’re extremely hopeful that the current situation will be reviewed with regards to means-tested benefits. We do not feel that homeowners who wish to release a proportion of their equity should find themselves at risk of being penalised for doing so.”
For no-obligation advice on whether equity release could help you and information on the best plans please call our 24 hour helpline and speak to one of our advisors:
Or use the comments box below to ask a question.
Equity Release may involve a Lifetime Mortgage or Home Reversion Plan. To understand the features and risks ask for a personalised illustration.
Age Partnership provides initial advice at no cost and without obligation. Only if you choose to proceed and your equity release case completes would a typical fee of 1.5% of the amount released or £795 be payable.
Important things to consider about equity release:
- Equity release could affect your current or future entitlement to means-tested benefits
- Releasing equity to spend in your lifetime can reduce the amount that is left in your estate when you pass away
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