The proposed changes to the pension credit system, due to come in on November 2nd, may be of some assistance to those aged 60 and over who are eligible for pension credit, according to equity release specialist Key Retirement Solutions.
In response to the alterations announced by chancellor Alistair Darling who stated that the time had now come to increase the capital disregard from £6,000, Dean Mirfin of Key Retirement Solutions observed that “this is a greater significant step than many may realise”.
He went on to say that, as a result, more pensioners will be able to consider equity release as a way of managing debt, while leaving “their entitlement to pension credit intact”.
Under the new regulations, capital disregard for pension credit will be increased to £10,000.
Earlier this month, elderly people were advised by Andrew Harrop of Age Concern and Help the Aged to consider working during their retirements in order to boost their incomes and prevent them from falling into debt.
By Sarah Adie