NAPF comments could inspire increased take up of lifetime mortgages

09 August 2010

A number of people aged over 55 years could be encouraged to seek equity release advice following recent comments made by one pensions body.

The National Association of Pension Funds (NAPF) has claimed that government plans to increase the state pension age to 66 years by 2016 are "too hasty".

According to the organisation, the timeframe does not leave people enough time to prepare for the changes.

This could lead to a rise in the popularity of lifetime mortgages, which allow people to benefit from some of the cash tied up in their property.

Joanne Segars, NAPF chief executive, said: "Retirement ages do need to go up, but the government is being too hasty. Lifting the state pension age for men to 66 by 2016, or even earlier, is simply asking too much.

"Many people now in their mid to late 50s have made quite detailed retirement plans and they may be unable to recalibrate their savings to cover the state pension they will lose. Six years is not enough."

Homeowners aged over 55 years who are curious about how their property could provide them with a tax-free cash boost can find out by using the equity release calculator offered by Key.