Is it time to consider property equity when paying for care?

Posted on 10 August 2011

Equity release could have a more central role to play in paying for long term care and other costs, as the age at which the average person is expected to live to continues to rise in the UK.

Ministers need to give more consideration to the role played by equity tied up in property as the government considers further reforms to retirement models, according to trade body Safe Home Income Plans (Ship).

Pensions minister Steve Webb underlined the government's commitment to creating a simpler state pension that is easier for people to understand provides certainty.

However, Ship director general Andrea Rozario suggested that many over-55s have significantly fewer choices available to them than the younger Britons the proposed changes will affect.

She said: "We call on the government to serious consider the part that housing equity can play in retirement funding.

"Now is the time for a government department to take ownership of this product range and ensure that consumers consider all their assets."


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