Ian Blackford – 2015 Parliamentary Question to the Department for Work and Pensions

The below Parliamentary question was asked by Ian Blackford on 2015-12-04.

To ask the Secretary of State for Work and Pensions, what discussions his Department has had with the equity release industry on the potential contribution of equity release to supporting the income of pensioners.

Justin Tomlinson

The Government has created the foundation for saving for retirement via automatic enrolment and the State Pension reforms and given individuals the freedom to use their own savings and access other sources of income or capital in the way that best suits their needs. The latest figures from the Office for National Statistics indicate that around 80% of pensioners hold some form of housing equity. However, people who might choose to access potential sources of income, such as equity release or flexible pension products, will need to give careful consideration to whether it best suits their needs and how it could affect their income and entitlement to welfare, both now and in the future.

That is why the government set up Pension Wise to provide information and guidance on how people can access their pension saving flexibly. Information is widely available in terms of how income and capital are treated in the means-tested benefits. Officials have held discussions with the equity release industry in May 2014 and February 2015 to explain the interactions between equity release and means tested benefits.