Government Plans to Bring Forward Pension Age Increase
In a move that could see many Brits working well into their late 60’s and, possibly, early 70’s sooner, the Government’s decision to bring forward the increase in retirement age could result in more homeowners turning to equity release.
The pressures of having to work until the age of 70 years old might mean that some homeowners consider equity release so that they can enjoy their retirement early.
Equity Release Could Help Homeowners Enjoy Retirment
According to the new Conservative, Liberal Democrat Coalition Government, by 2016 men could have to work until they are 66 years old, with retirement pushed back a year in each of the following decades.
This change in the retirement age is being blamed on the poor standard of British state pensions, which Work and Pensions Secretary Iain Duncan Smith derided as “leaving millions in poverty.” Mr. Duncan Smith is quoted on the BBC saying:
“Britain used to have a pensions system to be proud of, but due to years of neglect and inaction we are left with fewer people saving into a pension every year and the value of the state pension has been eroded, leaving millions in poverty.
“People are living longer and healthier lives than ever and the last thing we want is to lose their talent and enthusiasm from the workplace due to an arbitrary age limit.”
Equity release schemes have the potential to unlock a tax free lump sum from the value of your home to be spent towards anything. This can help many homeowners enjoy greater financial freedom in retirement.
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