Tough economic times and sweeping job cuts are on the horizon as the impact of the coalition's spending cuts is yet to be felt, it has been suggested.
This could encourage a number of people aged over 55 years to consider utilising some of the value of their home through an equity release scheme in order to secure their retirement finances.
Jonathan Loynes, chief European economist for Capital Economics, explained that the full force of the government's cut will really start to bite in 2011.
"We've hardly felt the thin edge of the wedge yet. For now, government spending is expanding pretty rapidly. It's only really from the next fiscal year onwards … that spending crash lands … sharply," he said.
The expert added that "between half a million and a million jobs are likely to go; not all at once obviously, over a period."
Homeowners aged over 55 who are concerned about the state of the economy can find out how the value of their property could boost their income with a tax-free cash payment by contacting Key Retirement Solutions for an equity release guide.
Posted by Claire Ford
