Pensions Put Back May Mean More Relying on Equity Release
The proposal by the government to put back the age at which pensions may be drawn may leave some pensioners struggling financially and could see more relying on equity release.
Initially the pension age was to be equalised to 65 in 2020 and 66 by 2026; agreed when the Coalition Government came to power. This has now been altered to 65 years old for men and women by 2018, leaving many two years short to plan for their retirement.
Around 300,000 women are thought to be affected by this proposal; those born between 1953 and 1954. Many affected by this will have to work two more years than originally planned before they are able to claim their pensions.
Some women will have just seven years to prepare financially and one of the choices may well be looking into equity release schemes to release money from the equity in the property.
Equity release schemes are of course just one of the ways that women, worried about their finances, could find income.