Equity release 'could help finance retirement'
Despite next week's increase in the state pension, equity release body Safe Home Income Plans (Ship) says pensioners will still face financial difficulties as the recession continues to deepen.
The UK state pension increases to £7.25 per week for couples and £4.55 per week for single pensioners from April 6th.
Andrea Rozario, director general of Ship, welcomes the rising state pension but says people saving for retirement could dramatically increase their income with equity release.
Stalling pension provision and an ageing population means the UK faces a "very real" retirement funding crisis, according to Ms Rozario.
"The average 70-year-old equity release customer could typically raise £61,500 from their £205,000 property," she adds.
Parliament recently held a debate in which Baroness Hollis of Heigham emphasised the need for the government to consider equity release as a viable tool for financing retirement.
She called for clarification that older people who adopt the scheme will not have their pension credits withdrawn.
Related Stories
This news is available in 