Using Equity Release to Make Up the Pension Shortfall
With the new coalition Conservative and Liberal democrat Government remaining committed to public sector pension reform and further cuts, there is a worry that numerous people might be affected. However, by using an equity release scheme, homeowners from the public sector that are approaching retirement might be able to improve their lifestyles.
Through an equity release scheme, homeowners can unlock a tax free lump sum from the value of their homes. This can be used for a number of things but those potentially affected by the expected pension reform, might need this form of finance to ensure they can enjoy their retirement.
Could Equity Release Ease the Burden?
An estimated 5.8 million public sector workers could be affected by the proposed cuts leaving them with a difficult decision between staying in work and taking a lower accrual rate.
However, the equity release market could provide many with an additional option. It once again brings the calls for the government to acknowledge equity release into focus. With it providing a supplement to income for many homeowners, it could help ease the burden that public sector pension cuts will create.
Related posts:
