Buck calls for equity release overhaul

Provider of human resources solutions Buck Consultants wants the government to work alongside the equity release market so that pensioners are better supported.

The company’s director, Fraser Smart, believes many pensioners will struggle to fund their retirement and wants to see more done to allow people to remain in their homes without struggling to stay afloat.

“The current system is not geared to deal with our many pensioners with valuable properties but little in the way of income or liquid assets,” Mr Smart told the FT Adviser.

“We suggest a change to the system that would allow those with properties to benefit from the cash locked up in their homes to pay for long-term care without the need to sell outright.

“The care costs over time would be charged against the equity in their homes and the government would foot the bill in the meantime.”

He adds: “This would also allow the government to offer pension savers substantially more flexibility in the timing and amount of pension they draw once they reach state pension age, since there would be no need for a safety net following the removal of means-testing.”