Could poor sterling lead to an increase in use of lifetime mortgages?

 

UK Pension plans could have their portfolios negatively impacted by the weakness of sterling, it has been claimed.

This could inspire a number of Expats who still own a property in the UK to look into equity release schemes as a way of ensuring their retirement finances are sufficient.

According to JP Morgan Asset Management, a poor pound could have an adverse effect on the investment returns of a number of pension plans.

Peter Ball, the firm's head of UK Institutional Business, said: "Many UK pension plans hedge at least 50 per cent of their investment returns back to sterling.

"Whilst many plans implemented hedging for risk control purposes, the current weakness of the pound will be having a significant impact on their portfolios."

Homeowners aged over 55 years who are concerned about the risk pension plans take can make sure their retirement finances are adequate with cash taken from the value of their UK property assets through an equity release plan.