Isolated changes are not enough as the UK’s pension system requires a complete overhaul to entice people to save, according to one expert.
This could inspire a number of people aged over 55 years to see how the value of their home could boost their income by taking out a lifetime mortgage.
AEGON has welcomed proposals from the government to end the requirement to purchase an annuity by the age of 75, but claimed the pension system will not be fit for the 21st century unless there are more changes.
Kate Smith, the firm’s pensions development manager, said: “Overhauling antiquated rules to give people more choice is a very welcome move from the new government.
“But if we want a premier retirement framework that’s truly fit for purpose in 21st century UK we need to stop making changes in isolation. We must take this opportunity to have a complete overhaul of retirement rules and consider how they tie up with long-term care provision.”
Homeowners aged over 55 years who are concerned about the UK’s pension system can find out how the value of their property could provide them with a tax-free cash lump sum by using Key Retirement Solutions‘ equity release calculator.
Posted by Tom Papworth
