Equity release could boost pension incomes

25 June 2009 / by Rebecca Sargent

Equity release could boost the pension income of UK pensioners who are finding themselves working well into their retirement, research from Key Retirement Solutions has revealed.

According to Key Retirement Solutions, the latest Pensioners' Income Series figures from the Department for Work and Pensions revealed that in 2007-2008 17 per cent of all pensioners were receiving income from earnings, up five per cent since 1997-1998.

And, in addition to current market conditions hitting pension funds, the retirement specialists have found that tax is also hitting pensioners particularly hard.

Commenting, Dean Mirfin, group director at Key Retirement Solutions said: "The worrying trend that these new figures show will not come as a surprise to anyone, which is that state support is decreasing and pensioners are having to be more self reliant.

"With falling retirement provision ahead we expect that the percentage of income coming from the state will fall further behind the cost of living. Of further worry is the widening gap between pensioners net and gross income, showing that taxation of our older population is rising," he added.

According to Mr Mirfin, equity release could be the solution for many pensioners who are forced to continue working. In fact, a typical release of equity could produce an additional weekly income of more than £78, he said.

"Equity release allows those with wealth tied up in their homes to unlock that wealth for their benefit," he added.

Read our free guide to equity release and find out if equity release is right for you with free quotes and advice.

© Fair Investment Company Ltd