Equity release ‘should be used to fund retirement’

Equity release has been identified as a “serious element” in planning for retirement by a finance expert.

Dean Mirfin, the business development director of Key Retirement Solutions, commented on David Blunkett’s call for equity release schemes to be used by older people to finance long-term care.

“For many pensioners their home is their biggest asset and it is good to see at parliamentary level that equity release is increasingly being recognised” he remarked.

Mr Mirfin added that the issue of pensions being unable to provide sufficient income is of “increasing concern”.

As life expectancy increases and the population ages, many are unable to afford suitable care in old age, he said.

Recently, independent financial advisor Dr Ron Altmann called for greater transparency in the pension market and claimed that there are major differences between public and private sectors. A public sector earner on £500 a week gains an additional £150 in pension accrual, he stated.

By Jamie Price