Over-50s urge Government to back equity release
Thursday 5th April 2012
Nearly half of all over-50s would back Government support for the use of equity release plans to boost retirement income, a study by independent adviser Key Retirement Solutions shows.
Its nationwide survey shows 45% of over-50s believe the Government should support the use of equity release in funding retirement income with more than one in three saying tax breaks would encourage them to use equity release.
Around 35% say tax incentives such as a lower rate on income generated through equity release would make it more likely they took out a plan while another 41% would need more details before supporting tax breaks.
KRS Pensioner Property Equity Index shows over-65s own £749.45billion of property without mortgages which could potentially be used to boost retirement income.
Support for the use of equity release in retirement planning has built recently with think-tank The Smith Institute and Financial Conduct Authority chairman Martin Wheatley both backing the use of property wealth to help fund long-term care.
Dean Mirfin, Group Director at KRS said: "Millions of pensioners are literally sitting on wealth in the shape of their home which could be used to help fund retirement income as well as long-term care at a time when the Government is focused on saving money.
"Equity release is not right for everyone but Government support for plans for example through tax incentives when income is generated would help pensioners to help themselves, becoming less reliant on the state, and in a way which bears no loss of existing revenue to Government.
"The Budget will have a massive impact on pensioners through the withdrawal of age-related personal allowances and the Government needs to address that issue as soon as possible."
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