Equity release ‘must be promoted due to difficult pension climate’

Posted 10/12/2009

A trade body has called on the government to do more to promote equity release to help older people cope with their increasingly diminished pension income.

Safe Home Income Plans (Ship) stated that the government has a “duty” to highlight alternatives like equity release after introducing measures in the Pre-Budget Report which are likely to limit consumers’ retirement funds even further.

These include a reduction in public sector pension values and a lessening of the tax relief offered on pension savings.

As a result, Andrea Rozario, director general of Ship, urged the government to promote equity release as a “viable mainstream option” for retired people with property assets.

She said: “There is an estimated £700 billion tied up in housing equity by those in retirement: money which could be used to improve the quality of life for many pensioners.”

Last month, Ship suggested that all of the major political parties in the UK should come to a consensus on the promotion of equity release to pensioners facing financial difficulty.