The new coalition does not seem ready to consult on introducing measures to make private pensions more flexible, according to one expert.
This could encourage a number of homeowners, in particular those aged over 55 years, to take out a lifetime mortgage, which could provide them with a tax-free cash lump sum taken from the value of their property.
Following yesterday’s (June 22nd) Budget, independent policy adviser Dr Ros Altmann noted that there was no news on increasing the flexibility of private pensions.
“The coalition has talked in the past about trying to make pensions more attractive, by allowing people to make some withdrawals, rather than forcing them to keep the money locked till retirement,” she said.
“But it seems that they are not even ready to review or consult on this yet. It would be a potentially attractive measure to encourage more pension savings in the first place.”
Homeowners who are curious about how much cash their property could generate for their retirement can find out by contacting Key Retirement Solutions for an equity release guide.
Posted by Tom Papworth
