The funding shortfall of the UK’s 200 largest defined benefit pension schemes has soared to £100 billion, according to new figures.
This could inspire a number of homeowners aged over 55 years to seek equity release advice to see how the value of their home could boost their retirement income.
According to a recently-published report by Aon Consulting, the pension schemes had a deficit of £100 billion at the end of June, up from £88 billion in the previous month.
The firm also claimed that the situation is set to get worse during the next few months.
Marcus Hurd, head of corporate solutions at Aon Consulting, said: “A consequence of the tough financial measures introduced in the UK emergency Budget is that deficits could increase in the short-term.
“For those companies that can afford to take a long-term view of pensions, the UK emergency Budget is short-term pain followed by long-term reward. The short-term pain, however, may be too much to bear for some companies in difficult times.”
Homeowners who are concerned about how this may affect their retirement plans can find out how the value of their property could provide them with a tax-free cash lump sum by consulting an equity release guide from Key Retirement Solutions.
Posted by Claire Ford
