Commenting, Simon Little, director of Home & Capital, said: “The SHIP discussion paper brings an issue of critical importance to the fore: how we face the challenges of Britain’s ageing population and meet the cost of retirement.
“It’s clear to all the current pensions arrangement is unsustainable. In under a quarter of a century, a sharp increase in Britons reaching retirement age, combined with rising life expectancy, will see the system overwhelmed and unable to cope. Inadequate pension provision – not helped by the end of final salary pension schemes - will mean pensioners either meet the cost of retirement on their own or face poverty. The growing number of older people requiring care means the issue of funding care provision is also a key consideration – both for individuals and the state.”
“Home & Capital joins SHIP in calling on the government to make equity release a fundamental part of the overall strategy of reforming retirement planning and social care. Equity release offers a logical solution whereby elderly homeowners – many of whom are reluctant to seek financial support from family - can stay in their own homes, supplement retirement incomes substantially and, where required, use the equity in their properties to cover the costs of care.”
