HM Revenue & Customs has admitted there are "widespread" problems with its pension systems, according to a Freedom of Information request seen by the Telegraph newspaper.
This could inspire a number of homeowners to seek equity release advice to see how they could use the value of their property to safeguard their retirement finances.
Ron Elmer, a journalism lecturer and former sub editor at the newspaper, told the publication about his recent dealings with the Department for Work and Pensions (DWP), which highlighted what was described as "Alice in Wonderland" security.
After receiving a letter with the correct address prompting him to claim his state pension, Mr Elmer contacted the department in order to go through their telephone set up process.
However, after giving out various details Mr Elmer was told the form could not be completed as he had given the wrong address, despite having lived in the same house for 31 years and receiving the correctly-addressed correspondence in the first place.
"The episode begs the question that if, for security reasons, DWP can’t tell me the ‘wrong’ address so that I can help to rectify the problem … how is it secure for them to send the form to any address I care to nominate as the ‘right’ one?" he said.
"I gave them all the other info – National Insurance number, taxpayer reference – so if I am a fraudster with this info I can now get my pension paid into a false account."
Homeowners aged over 55 years who are concerned about the UK pension system can ensure they always have adequate finances during their retirement by using their property to provide them with a tax-free cash sum by taking out an equity release plan.
Posted by Christian O’Leary
