Will people look into equity release schemes in order to cope with ‘forced' retirement?

 

Forced retirement has a "double negative" effect on the UK as those who retire pay less tax and have less money to spend, according to one pensions expert.

A lack of spending money could inspire those who are forced to retire to look into releasing some of the value of their home through an equity release plan, which could provide them with a lump cash sum or a regular income.

Dr Ros Altmann, who is also a governor of the London School of Economics, said: "People are not old at 60 or 65 years anymore – we have made such amazing advances in healthcare, life expectancy, working practices and yet somehow retirement and pensions policy has failed to keep up with the new realities and is still trying to throw people out of work as if they are too old, which they are usually not."

The comments follow the publication of a report from national charity Age UK, which revealed that forcing older workers to retire cost the UK £3.5 billion in lost economic output in 2009.

Expats with a property in the UK who are concerned about the impact a forced retirement could have on their finances can receive equity release advice on how their property could provide them with an income from an experienced scheme provider.