The UK’s current long-term savings system is a “complex mess”, according to one pensions and savings expert.
This could inspire a number of homeowners aged over 55 years to utilise some of the cash tied up in their property by taking out an equity release plan.
Pensions guru Dr Ros Altmann called for a simplification of the rules and said the current system should be “urgently scrapped”.
The comments follow the publication of a report by the Centre for Policy Studies, which proposed setting an annual contributions limit of £45,000 a year on all tax-incentivised savings.
Dr Altmann commented: “We need to help people understand the pension deal, not make it ever more unintelligible.
“I suspect that a £45,000 limit may be a bit too high and the government may choose a lower level, since the costs of tax relief will still be considerable and most will still go to high earners.”
Homeowners who are curious about how large a tax-free cash lump sum the value of their property could generate can find out with equity release advice from Key Retirement Solutions.
Posted by Alison Stephenson
