One of the pledges made by the Conservative-Liberal Democrat alliance when it came to power two years ago was to introduce a flat rate state pension and this was the main measure outlined in the Queen's Speech last week.

However, the amendments are only set to be applicable for new retirees, meaning millions of older people will continue to receive the same amount of pension.

New amounts

New pensioners will therefore be given £140, compared with the £107.45 that is paid to retirees at the present time.

Pensions minister Steve Webb said: "Our plans will radically simplify the state pension system and set it above the level of the means test, providing a fair and sustainable foundation for pension saving for people of working age."

The announcement in the Queen's Speech led to praise from a wide range of bodies, including the National Association of Pension Funds (NAPF), which said it is "delighted" with the introduction of a flat rate for state pensions.

Move welcomed

Chief executive of the group Joanne Segars stated reform of the current system is long-awaited and the NAPF has been calling for a single tier scheme to be brought in for many years.

"This is another big step towards a simpler, more generous state pension that no longer penalises people for saving," she said, claiming  millions of people will be brought out of means-tested benefits as a result, which will encourage individuals to take control of their old age by saving towards it.

Ms Segars added that as life expectancy continues to rise, it is inevitable that people will have to work until later in their lives and have to save more money for their retirement.

However, there are options for those who still intend to retire at 65 and equity release schemes that allow them to unlock money from the value of their property are among them.

Those who want to learn more about these products can do so by using the equity release calculator from Key Retirement Solutions.

Posted by Tom Papworth

Phyllis Wallbank, 93, turned to equity release after she was sent a bill for care costs for thousands of pounds from her local council.

Care home

Speaking to This is Money, she stated she decided to use the products due to the fact she did not want to move into a home.

"I would loathe it. I want to be here, where all my memories are. This way I can keep independent. I want to die here looking at the birds and enjoying the view," she was quoted as saying by the news provider.

Care bills are likely to play a major role in the finances of older people in the coming years and equity release plans are among the options on the table for those who do not want to relocate to a home.

Individuals like Ms Wallbank could unlock money from the value of their property and stay in it for the rest of their lives, rather than face the stressful process of moving house.

She suggested it was necessary for her to use equity release, as otherwise she would not be able to afford to put food on her table.

Dilnot report

Later in the year, MPs could approve proposals in a report by Andrew Dilnot on the future of care services that would see equity release schemes play a major role in funding care.

The plan has already won the backing of the Health Select Committee and it will go in front of MPs in the coming months.

If it gets the green light, consumers could be forced to pay for the first £35,000 of their care and the state would step in to cover the rest.

Homeowners wishing to learn more about unlocking money from the value of their property could use the equity release calculator from Key Retirement Solutions.

Posted by Claire Ford

New research by retirement income specialist MGM Advantage has found that 60 per cent of people questioned had received treatment for conditions which would qualify them for an Enhanced Pension Annuity. But around 72 per cent were completely unaware that this could entitle them to a higher income in retirement; that’s a lot of people who could be missing out on thousands of pounds of extra income.

What’s an Enhanced Annuity?
Simply put, an annuity turns the pension pot you’ve worked hard to amass into a regular income paid for life. An Enhanced Annuity works in exactly the same way but, by taking into account your health and lifestyle conditions, often provides a substantially higher income. In fact, one Key customer recently increased their income by over 100% simply by choosing an Enhanced Annuity.* Find out more about Enhanced Annuities.

How do I qualify?
There’s a whole host of conditions which can mean you’re eligible, and some of them are fairly common ailments. MGM’s survey found that 40 per cent of those questioned had experienced high blood pressure, 33 per cent high cholesterol and 12 per cent diabetes; all conditions which make you eligible. But people’s awareness of Enhanced Annuities is generally low, with many people simply accepting the annuity quote they’ve received from their current provider rather than shopping around to see if they qualify for an enhanced product.

How do I arrange an Enhanced Annuity?
Shopping around can be confusing and complex. Luckily, Key can do all the hard work for you, quickly checking to see if you’re eligible for an Enhanced Annuity and if so, how much extra income you could get. There’s no medical involved and no intrusive health questions to answer. We’ll give you all the information you need in order to choose the right annuity for you. Plus, our service is completely free to you as we receive payment from your chosen provider.

If you’re planning to retire in the next 3 – 4 months, make sure you call our experts on 0800 331 7711 to see if you’re eligible. We’re here Monday – Thursday 9am – 7pm and Friday 9am – 5.30pm.

Read about one Key customer’s experience of arranging an Enhanced Annuity in our latest edition of intouch magazine.

No health issues? No problem! Shopping around still pays even if you don’t have any health conditions. You could boost your income by around 30% simply by comparing quotes from annuity providers.** Don’t miss out, use Key’s hassle-free service to see how much extra you could get.

*A Key Retirement Solutions customer achieved this increase by qualifying for an enhanced plan, due to health and lifestyle conditions.
**National Association of Pension Funds and the Pension Institute, Feb 2012
It depends on your individual circumstances if you are able to achieve these increases.

According to Arthur Childs, managing director of Guildford-based Arch Financial Planning, there are a wide range of options available for those who want to increase their retirement income.

He argued working in a part-time role instead of retiring altogether can be a good way to do this, as people are living longer and healthier lives so do not need to stop work at 65.

Tax changes

Speaking to Citywire, he noted over-65s do not have to pay national insurance contributions, while those who are employed part-time are also subject to different income tax rules.

But for those who are ready to give up work, equity release is another option that is available, as it allows homeowners to unlock money that is trapped in the value of their home.

Although Mr Childs claimed this may not be the first step, it could be a more suitable choice for a lot of people than selling up and moving to a smaller house, or relocating to a different area.

"Most people think now that they will do some sort of part-time employment in retirement to keep things going," he told the news provider, adding individuals may do it because they need the money, or just because it gives them a reason to get out of the house on a regular basis.

Working on

Prudential recently revealed research that indicated a lot of people are happy to continue to work beyond the age at which they would be expected to retire.

Some 40 per cent of those polled by the organisation stated they would carry on in their positions if they were given the chance to do so, with 48 per cent of men and 32 per cent of women giving this response in the survey.

But for those who do not want to work and would instead prefer to look at other options, using the equity release calculator from Key Retirement Solutions could be a good first step to take.

Posted by Richard Planner

According to research conducted by price comparison site uSwitch.com, online prices have started to creep upwards,even though standard tariffs are at about the same level.

Those who have signed up online for an energy deal now pay on average £1,091 a year, compared to the offline amount of £1,252 annually.

Equity release

Equity release may be an option for those who are worried about their ability to pay their bills for the rest of the year, with the products allowing them to unlock some of the money that is tied up in their house's value and provide them with a monthly income or a lump sum.

Emma Bush, energy expert at uSwitch.com, explained the recent rise in online prices reflects the volatility in the energy market at the present time.

"The good news though is that online plans still offer a £161 saving on standard prices. But what it does mean is that now is the right time to be snapping up one of these deals as we could see online prices climbing higher," she said.

Homeowners were therefore urged to move quickly and sign up to a good energy deal online before the prices push up even more in the coming weeks and months.

Wholesale prices

Ms Bush claimed suppliers would need to see a consistent trend in substantially higher wholesale prices if they were to be able to justify a general price hike, although only SSE has pledged to hold tariffs until October.

Last month, deputy prime minister Nick Clegg stated a landmark deal that has been agreed between the coalition government and the UK's major gas and electricity providers is going to lead to consumers seeing their energy bills come down in the near future.

Those who want to find out more about how they could unlock money from the value of their home could use the equity release calculator from Key Retirement Solutions to do so.

Posted by Tom Papworth

According to financial adviser Ian Lowes, not enough people realise how much of a difference it can make to their income if they hunt for the highest rates before picking a product.

Professional financial advice

Speaking to the Journal, he advised older people to take professional financial advice, as this will allow them to gather information on what sort of product is right for them.

"An annuity guarantees you an income for the rest of your life, which is why they are so popular. Looking at it another way, you could be a long time in retirement and they are an insurance plan against outliving your assets," he said, noting other possibilities include enhanced annuities, which are offered where the person might be expected to live a shorter life, potentially because of health issues such as them being a smoker.

Mr Lowes also noted these could prove to pay a higher rate, with some products in this area of the market offering an income 20 per cent higher than standard annuities.

Right decision

However, he warned those considering annuities to ensure they are 100 per cent confident they are making the right decision before committing to it, as they are not able to go back and change their minds once it has been confirmed and they are tied to it for the rest of their life.

Last month, the European Insurance and Occupational Pensions Authority released a report in which it recommended annuities should only be sold on an advised basis, with chairman Gabriel Bernardino noting this would improve levels of consumer protection in the industry.

Individuals who are interested in learning more about this type of product could find using the annuities service from Key Retirement Solutions can help them see how much money they may be in line to receive each month.

Posted by David Hancock

According to new research conducted by Santander, bills have been going up at around double the rate of inflation for the last ten years.

This means those who rely on their savings may have to examine options such as lifetime mortgages to improve their financial position to enjoy a comfortable retirement.

Standard of living

Some 29 per cent of Britons who responded to a poll by the organisation claimed their standard of living has been forced down as a result of their growing bills.

Many are already struggling to cope and one in ten of those who took part indicated they would find it hard to balance the books if bills were to rise again in the next 12 months.

Finances squeezed

Carlos Palacios, banking director at Santander, stated consumer finances are increasingly being squeezed and rising bills are one of the main factors behind this.

He said: "People have already been forced to make a number of adjustments to their lifestyle to cope with the hikes and many will struggle to cope with further increases such as the water bill hikes recently announced."

Older homeowners may wish to look into equity release plans to unlock some of the money that is trapped in their property to ensure they have enough cash to pay the bills each month.

A recent report by AOL Money warned it is inevitable products of this nature are going to become more popular in the coming years, due to the "enormous gap" between pensions and the cost of living in the UK at the present time.

Those who want to learn more could use the equity release calculator from Key Retirement Solutions to see how much they would be able to receive.

Posted by Claire Ford

According to a poll by the organisation, 40 per cent of those planning to retire this year are willing to continue working if they are given the chance to do so.

Some 48 per cent of men and 32 per cent of women said they would want to stay in their roles.

The main reason given for retirees for wanting to continue to work for a living was to enjoy a healthier lifestyle and to keep their mind active, with 68 per cent citing this factor.

Earning enough money to ensure a comfortable retirement is also likely to be a reason behind the wish to stay in work, although options such as equity release schemes could allow homeowners to unlock money from the value of their house to live on.

Enjoy working

More than half (54 per cent) of the respondents to the research stated they enjoy their jobs and would be happy to carry on in them, while 39 per cent of individuals explained they do not like the idea of giving up their career and staying at home all day instead.

Vince Smith-Hughes, retirement expert at Prudential, claimed the results of the poll indicate that there is a new retirement reality taking shape in the UK at the present time, adding thousands of people are choosing to work beyond the age they would be expected to retire at.

Gradual retirement

"The fact that so many of this year's retirees would keep working on a part-time basis is a strong indication that, for many, working is as much about staying young at heart as it is about funding retirement," he said, adding gradual retirement is also an increasing trend, with retirees seeking to work part-time or even set up their own business when they leave their roles at 65.

Research by Prudential recently found 57 per cent of retirees are saving cash as a priority at the moment to ensure they are comfortable in their retirement.

Those wishing to learn more about unlocking money from the value of their house should use the equity release calculator from Key Retirement Solutions.

Posted by Tom Papworth

Lee Andrews, director of Solutions Recruitment in Newcastle, stated it is ingrained in the minds of employers that members of staff should retire at 65, although life expectancy has risen and this is no longer realistic for a lot of people.

Speaking to the Journal, he explained individuals are increasingly taking on part-time work after they have officially retired so they can boost their bank balances.

Interest rates

"They're also getting nothing for their savings with interest rates being so poor. Once upon a time I was getting a good return on my savings, but with the base rate being so low, there isn't much light at the end of the tunnel," said Mr Andrews, citing other factors such as lower annuity rates as a reason pensioners are going back to work.

It was also noted money is not the only thing involved, as many people lack purpose once they have stopped working for a living, with some becoming depressed as a result.

Mr Andrews noted they no longer have a reason to get out of bed in the morning and this can have a negative impact on their health.

Working on

Last month, research by the Pensions Policy Institute indicated some pensioners are going to have to work on for more than a decade if they are to earn enough money to fund a retirement.

Director Niki Cleal explained retirement planning in the UK has been affected by a dramatic rise in life expectancy in the last couple of generations, which means people are not prepared for quitting work at 65 any more.

Homeowners aged between 55 and 95 could use equity release schemes to supplement their income in their retirement, with Key Retirement Solutions able to provide more information.

Posted by Richard Planner

Download the full report at: http://www.keyrs.co.uk/press/MarketMonitorQ12012.pdf

Equity release growth continued in the first quarter of 2012 with both plan sales and total lending climbing, analysis from leading independent equity release adviser Key Retirement Solutions shows.

Total lending rose to £217.1 million in the first three months of 2012 and would have topped £300 million if £83.8 million of untapped drawdown funds which have yet to be released are added in.

Plan sales rose 6.4% to 4,508 in the three months compared with 4,237 for the same period of 2011 while growth in total lending was 1.7% from £213.48 million in the first three months of last year.

Growth in plan sales was nearly four times faster than growth in total lending underlying how increasing use of drawdown is driving growth across the equity release market – Key Retirement’s figures show £83.8 million of drawdown funds was not used in the quarter.

Drawdown sales made up 66% of total sales in the first quarter compared with 55% for the whole of 2011, enhanced drawdown and single advance enhanced sales also made up 10% of the market.

Dean Mirfin, Group Director at Key Retirement Solutions (www.keyrs.co.uk), said “As the return to recession hits home to those on fixed incomes it comes as no surprise that in the first quarter of this year we have seen a further increase in the levels of equity being released, importantly the increase in the levels of drawdown are significant allowing greater flexibility for borrowers. The levels of enhanced equity release, now accounting for a 10% market share, are also growing in significance.

“Helping out family members still accounts for almost 1 in 4 of all plans taken out during the period showing that equity release is helping across generations during these testy financial times.”

Home and garden improvements remained the most popular use of equity release cash – 57% of customers used some or all of the cash for that with 33% using money to clear debts and 31% to help fund holidays.

Across the country 6 out of 12 regions saw growth in the total number of plans sold with the North seeing growth of 65% and the East Midlands 53%. Wales saw a 13% fall in sales.

The biggest growth in total value released was in London where total value increased by 45.7% while the East Midlands saw totals climb by 43.7%. In total 4 out of 12 regions saw increases.

Anyone looking to release equity from their home can get Key Retirement Solutions’ independent guide to equity release by calling 0800 531 6010 or visiting https://www.keyrs.co.uk/free-guide.

Notes to Editors

* Key Retirement Solutions market data

For more information, please contact:

Dean Mirfin, Group Director
Key Retirement Solutions
07879 678737

Press Office
Key Retirement Solutions
01772 508533

Citigate Dewe Rogerson

Kevan Reilly/Paul Griffin

0207 282 1096/1041

About Key Retirement Solutions

Founded in 1998 Key Retirement Solutions is the leading independent adviser specialising in equity release. Key Retirement Solutions is a limited company registered in England No 2457440 with its Head Office at Key Retirement Solutions, Harbour House, Portway, Preston, Lancashire, PR2 2PR.Key Retirement Solutions is authorised and regulated by the Financial Services Authority.