According to the Department of Work and Pensions, millions of pounds are being spent on the drive to persuade individuals of the importance of saving for their retirement.

It comes as part of the build-up to the introduction of the auto-enrolment scheme that will see companies automatically pay pensions contributions for their members of staff.

Explanation provided

The fundamentals of the reform are to be explained through the campaign, which will direct individuals to the Directgov website where they can learn more about the programme.

But for those who are already nearing their retirement, this could come too late if they have been unable to put enough money away for their later years, with homeowners aged between 55 and 95 likely to be considering products such as lifetime mortgages in order to boost their situation.

One of the benefits of equity release schemes is that people do not have to sell their house – which may be full of decades worth of memories – and go through the stressful process of moving to another residence.

Employers and individuals

Pensions minister Steve Webb stated it is important both employers and individuals are aware of the changes to the pensions system, which is why the coalition government has launched the new campaign, which will take place over the course of the next few months.

He said: "Automatic enrolment will transform this country, putting an end to the decline in pension saving, and setting millions on course for a more prosperous retirement."

Writing for the Eastern Daily Press earlier in the month, Mr Webb argued both low and middle-income workers are to be among those to benefit from the pensions reform.

For those who want to unlock some of the money from the value of their property, using the equity release calculator from Key Retirement Solutions can be a good first step.

Posted by Tom Papworth

The coalition government called for an overhaul of the current system in order to ensure older people have enough money to be financially secure once they give up work.

Writing for the Eastern Daily Press, Mr Webb claimed the new auto-enrolment scheme will provide a boost for low and middle-income workers, but this could be too late for those who are already nearing their retirement age.

Under the plans unveiled by the coalition government, workers will automatically be signed up for part of their salary to be paid into a pension scheme in order to ensure they have some financial provision for their later years in life, but the idea has not been universally accepted.

£600 a year

Mr Webb said those who choose to opt-out from the plans will be in line to lose out on around £600 a year – £50 a month – if they do so, as they will also miss their employer's contributions.

"However, workplace pensions are only part of the picture. The state pension is the cornerstone of people’s retirement savings in this country," he added.

It was added the coalition government has already confirmed it will be raising the state pension by more than it has ever been upped since it was first introduced.

But for those who do not believe this is going to be enough to ensure they have the right amount of money to enjoy a comfortable retirement, options such as equity release mortgages could be considered, due to the fact they allow homeowners to unlock cash from the value of their house.

Thousands of pounds

Some people may also find changes made by the coalition government mean they are going to lose out on thousands of pounds a year as a result, massively affecting their retirement plans.

Dennis Keeling recently told the Daily Telegraph he will be worse off by £9,000 than he expected due to opting for "income drawdown" rather than an annuity.

He said he is furious with this, as he believes he has managed his own investments well and is now being punished for it.

Using the equity release calculator from Key Retirement Solutions may allow homeowners in this position to see if they could raise funds from the value of their property.

Posted by Alison Stephenson

Key Retirement Solutions welcomes the Government new flat rate pension scheme, but has stressed that pensioners are still no better off than before, as they struggle to supplement their income.

Around 600,000 people retire each year and will have to rely on the current mix of State pension and benefits before the new flat rate scheme comes into effect.

The current full state pension is £97.65 a week, but can be topped up to £132.60 with pension credit. Due to the complexity of the old system, more than one and a half million* eligible pensioners do not claim pension credit each year and around £5 billion in benefits goes unclaimed.

Under the new scheme, this could be replaced by a new £140 flat rate, with inflation expected to push this up to £155 by 2015 or 2016.

Dean Mirfin, Group Director at Key Retirement Solutions (www.keyrs.co.uk), said: “This announcement is great news for future pensioners who will no longer face the complexity of the old system in their effort to gain what they are entitled to.

“Although under this reform, not only will 10 million people who have already retired be excluded from the new deal, but actuaries say many other people still at work will not live long enough to enjoy its benefits.

“Whilst this will simplify the future claims process, pensioners will still struggle to enjoy a good quality of life due to a lack of available income. We are currently seeing a steady increase in pensioners looking towards equity release to supply that much needed income, and we anticipate that this will only increase.”

The equity release market saw a rise in the number of plans sold in 2010** with more pensioners opting for drawdown products which will enable them to live comfortable lives in retirement.

Anyone looking to release equity from their home can request an independent guide to equity release by calling 0800 531 6010 or by visiting https://www.keyrs.co.uk/free-guide.

Notes to Editors

*http://www.bbc.co.uk/news/business-12954888
**KRS Equity Release Market Monitor 2010

This could encourage a number of people aged over 55 years to consult an equity release guide in order to see how the value of their home could boost their finances.

According to Brendan Barber, general secretary of the Trades Union Congress, the government's "reckless" reaction to the recession has been a major factor in inflation increasing to 5.5 per cent last month.

"With wages falling far behind inflation – RPI is at its highest for 20 years – and the cost of commuting rising by nearly eight per cent, workers are facing the toughest livelihood squeeze in decades," he commented.

"Worse still, the government is making things even tougher by imposing pay freezes across the public sector and growth-sapping spending cuts that give few opportunities for workers to ask for higher pay rises."

Homeowners aged over 55 years who are curious about how the value of their property could offer them a tax-free cash lump sum can find out by using the equity release calculator provided by Key Retirement Solutions.

Posted by Tom Papworth
 

The comments could inspire a number of people aged over 55 years in the country to seek equity release advice in order to see how the value of their home could boost their income.

Chancellor George Osborne announced billions of pounds worth of cuts in the review, but the Scottish government has claimed the moves go too far, too fast.

Scotland's finance secretary John Swinney commented: "[The] cuts go far too deep, far too quickly – the capital budget cuts alone will threaten some 12,000 jobs in Scotland.

"In its decisions today, the UK government made the wrong choices for Scotland and threatens to choke off the recovery that we are building."

Scottish homeowners aged over 55 years who are curious about how the value of their property could offer them a tax-free cash boost can find out by using Key Retirement Solutions' equity release calculator.

Posted by Alison Stephenson
 

This could lead a number of people approaching retirement age to seek equity release advice on how the value of their home could provide a welcome boost to their retirement funds.

According to financial news provider Thisismoney.co.uk, high earners would face being taxed twice if they decide to continue adding to their pension pots after the 40 per cent tax relief is scrapped.

Laith Khalaf, a pensions analyst at Hargreaves Landsdown, told the news provider that the Lib Dems wouldn’t have to fight too hard to get their policy added to the legislative agenda as it could potentially save the government £5.5 billion per year.

"One Lib Dem policy that won’t take too much persuasion to get onto the legislative agenda will be the abolition of higher rate tax relief," he said.

"This would save the Treasury £5.5 billion a year and any collateral damage to the pension system could be laid at the Liberal Democrat door. We could be entering the final few weeks of higher rate tax relief on pension contributions."

Homeowners that are concerned about the future of the UK pensions landscape can find out how the value of their home could boost their finances with the equity release calculator provided by Key Retirement Solutions.

Posted by Claire Ford

This could encourage a number of people to look into equity release plans as a way of boosting their retirement income.

During last week’s televised election debate, prime minister Gordon Brown said: "Our four-year deficit reduction plans include a rise in the top rate of tax above £100,000, taking away pension tax reliefs for those above £100,000 at a higher rate and a National Insurance rise."

However, this represented a change when compared to the Labour Party’s current proposals to cut the tax relief for those earning more than £130,000.

The party’s press office told Money Marketing that Mr Brown has just had a "slip of the tongue", but the prime minister repeated the suggestion during an interview with the BBC’s Jeremey Paxman later that week.

Tom McPhail, head of pensions research at Hargreaves Lansdown, told Money Marketing: "Clearly, the fact that Gordon Brown stated that higher-rate pension tax relief will be cut for people earning over £100,000, then reiterated that message means we have to assume that if re-elected Labour will cut tax relief for those earning over £100,000."

A number of people approaching retirement age could now look into lifetime mortgages, which can provide a homeowner with a regular income, as a way of boosting their retirement funds.

Posted by Christian O’Leary

This could lead a number of retired people to turn to products such as lifetime mortgages in a bid to ensure a comfortable income.

Reverand Dr John Strain from campaign organisation Save our Savers, said despite accounting for years of work, the manifestos of the Labour, Conservative and Liberal Democrat parties show a "flagrant disregard" for the plight of the UK’s 24 million savers.

"The task, of course, is to ensure that the next government of our country realises the crucial role savings will play in securing our economic recovery. The culture of unchecked debt and irresponsibly cheap credit has to end," he said.

"There were some nods in the right direction for savers by the main three parties in their manifesto and it is important we recognise these."

Homeowners that are concerned about their retirement finances could receive a welcome financial boost using money from their property assets with an equity release plan from Key Retirement Solutions.

Posted by David Hancock

A number of people could now be inspired to see how a lifetime mortgagecould benefit them after Age UK accused the Tories of "shying away" from the challenges of an ageing society.

Michelle Mitchell, charity director of the group, which combines Age Concern and Help the Aged, said: "Voluntary insurance to pay for care at home‚ the possibility of abolishing the Default Retirement Age and the protection of existing age-related entitlements are modest steps forward.

"The Tories’ manifesto fails to address the big challenges facing our ageing society on care‚ health‚ poverty and warm homes."

Homeowners who are concerned about how they are going to fund their retirement needs can see how much cash an equity release plan will generate by seeking equity release advice from Key Retirement Solutions.

Posted by Richard Planner

The measures are expected to allow millions of UK citizens the opportunity to save for their retirement.

Angela Eagle, minister of state for pensions and the ageing society, claimed the package was necessary as the private pensions market remained unobtainable to many workers.

"This is a fair and sensible funding package which delivers the Pensions Commission’s vision of a low cost scheme in an affordable way," she said.

"It balances the needs of members, taxpayers and the interest of the broader pensions industry. Market failure for low and moderate earners means they have not had access to a suitable low cost pension scheme and have not been able to save for their retirement. NEST will put this right."

People who have invested in property could also boost their retirement income with funds from an equity release scheme.

Such policies allow homeowners to access cash that may be tied up in their assets.