Could a hung parliament promote use of equity release schemes?

Britons nearing retirement age are being urged to "shop around" for products in order to maximise their income following the result of yesterday’s (May 6th) election.

This could lead to a number of people taking out lifetime mortgages alongside their pension schemes in order to secure their retirement spending power.

According to retirement finance specialist MGM Advantage, the fact that the election has resulted in the first hung parliament since 1974 could have a "positive impact" on annuity rates.

The firm said the result, combined with fewer gilt purchases from the Bank of England, could see annuity rates rise.

Craig Fazzini Jones, MGM’s director and head of designs for retirement, said: "If annuity rates do rise, this will come as welcome relief to the annuity sector because rates in general have been falling.

"However, regardless of the political situation, we would urge those nearing retirement to shop around to make sure they are maximising their retirement income over the longer term, and are not influenced by short-term market movements."

Those who are looking to boost their retirement finances can use some of the money that may be tied up in their property with an equity release plan.