Britons should be made to ensure they look after their own retirement finances, according to one expert.
This could encourage a number of people aged over 55 years to consider using an equity release plan to utilise some of the cash tied up in their home.
Commenting on the government’s announcement that it is to review the state pension system and the default retirement age, the Fair Investment Company has said that the current system in the UK is “unaffordable”.
Nick Scarret, the firm’s head of pensions, explained that even if the default retirement age is increased to 68 years by 2046, it will have taken almost a century to rise by just three years.
“In the same time, the average life expectancy will have risen by more than four times that,” he commented.
“It will be interesting to see what comes out of the review in the pension system, and hope it goes some way to help close the gap between contribution and payments, but whatever happens, the fact remains that there has to be much more onus on the individual to look after their own finances in retirement.”
Homeowners aged over 55 years who are concerned about the UK’s pension system can find out how their property can provide them with a tax-free cash lump sum by using Key Retirement Solutions‘ equity release calculator.
Posted by David Hancock
