Ship defends use of property in retirement calculator

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Ship defends use of property in retirement calculator

Fri 15th Oct 2010

People who use their house to help them fund retirement have been defended by Ship Equity Release.

Andrea Rozario, director general of the industry organisation, pointed out that in many cases property is the biggest asset a family owns and there are no other alternatives for providing additional income to supplement pensions.

Her comments were made in response to comments by the minister of state for housing and local government Grant Shapps indicating that people should treat their property as a home, rather than a pension.

"We absolutely agree that a variety of assets built up over a lifetime should be used to finance retirement. Unfortunately many people simply don't have that option," Ms Rozario said.

She picked out those individuals who will not receive a public sector pension in the future as being particularly likely to need their property to help increase their income after they retire.

This week, the Treasury announced that the annual allowance for tax-privileged pension provision will be cut to £50,000 from April 2011.

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