Homes being used for pension top ups

02/12/2009

More than one in ten of over 50's have consciously saved less into their pension schemes because they expect property values to rise.

However relying on your property to fund your retirement is a risky business, when many people have seen an average of £27,250 wiped off their property's value over the past two years.

Last year, consumer champion Which? warned that pensioners should only consider unlocking equity from their home as a last resort.

Equity release schemes could be expensive, inflexible and leave people with little equity, it said.

Money released from a property could also affect the level of means-tested benefits which owners were entitled to.

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