Pensioners back government support equity release

Key Retirement Solutions has claimed that almost half of all over-50s would back government support for the use of equity release plans to boost retirement income.

The equity release adviser said its nationwide study shows 45% of over-50s believe the government should support the use of equity release in funding retirement income with more than one in three saying tax breaks would encourage them to use equity release.

Think tank The Smith Institute and Financial Conduct Authority chairman Martin Wheatley are both backing the use of property wealth to help fund long-term care.

Around 35% say tax incentives such as a lower rate on income generated through equity release would make it more likely they took out a plan while another 41% would need more details before supporting tax breaks.

Key Retirement Solutions Pensioner Property Equity Index shows over-65s own £749.45 billion of property without mortgages which could potentially be used to boost retirement income.

Dean Mirfin, group director at Key Retirement Solutions, said: “Millions of pensioners are literally sitting on wealth in the shape of their home which could be used to help fund retirement income as well as long-term care at a time when the government is focused on saving money.