Will equity release plans become more popular due to ‘complex’ pension charges?

UK Employees could "baulk" at the National Employment Savings Trust (Nest) due to the high and complicated nature of its charging structure, according to the Confederation of British Industry (CBI).

This could lead to a rise in the popularity of equity release schemes, which allow homeowners to boost their incomes with cash taken from the value of their property assets.

John Cridland, CBI deputy director-general, said: "The scheme is meant to be low cost and easy to understand, so that it spurs people to start saving.

"The next government needs to revisit the structure of these fees. We must make it easier for the low paid to save by smoothing the cost, instead of front-loading it. The pensions time bomb is ticking loudly and more people must be encouraged to save."

NEST is to be introduced in 2012 with the intention of encouraging more Britons to start saving into a pension fund.

Expats in Spain who still own property in the UK and are concerned by this could see how a lifetime mortgage could boost their retirement funds by contacting an experienced advisor.