Financial help for pensioners in debt could become a reality if the State Pension Age increases to 66 from the current 65 according to the Shadow Chancellor – George Osborne during the Conservative Party Conference in Manchester last week. In fact this is one of the proposed policies the Conservatives intend following a successful general election next year.
It is widely accepted that the state pension age needs to rise due to the increase in life expectancy. This view is backed by Pensions Policy Institute Director – Niki Cleal in this statement to press.
“When the current state pension was introduced in 1948 a 65-year-old man could expect to draw his state pension to age 77, by 2008 a 65-year-old man could expect to draw it until age 86 – this increase in life expectancy increases the cost to the exchequer of providing the state pension.”
Debt levels will also be helped by people working for another year to clear a larger proportion of those debts prior to retirement. Some studies show that up to 22% of the 50 years old plus category have taken out credit during the last year.
One solution that many pensioners are looking into at the moment is Equity Release. Many pensioners in debt use these schemes to pay off what they owe. This is rapidly becoming a more popular solution for pensioners. If you think it may be an option for you, please get in touch using the form on the right.
Equity release is becoming much more popular in recent months, up by as much as 13% overall in the last six months.
Ivan Cooper, Chairman at debt advice specialists Chiltern, said: “As long as equity release is done through a reputable company, it can be a safe way to free up money and get out of debt; which could improve your lifestyle.”
