In the past 12 months the combined pensions deficit of the UK’s biggest quoted companies has increased from £49 billion to £160 billion, according to new figures.
This could encourage a number of people nearing retirement age to consider using the value of their property to boost their income through the use of an equity release scheme.
A recently-published study by consultancy firm Mercer revealed that the deficit of 350 FTSE firms has more than trebled in the last year, the London Evening Standard reported.
Dr Deborah Cooper, head of Mercer’s retirement resource group, told the newspaper: "The effects of falling corporate bond yields, due to increased market confidence relative to the position last year and higher inflationary expectations, will result in many companies’ balance sheets remaining exposed to significant pension scheme deficits, despite increasing asset values."
The rate at which the deficit has increased could inspire a number of people to use the equity release calculator provided by Key Retirement Solutions to see how an equity release scheme could secure their retirement finances.
Posted by Christian O’Leary
