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Centre for Policy on Ageing | |
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The UK Equity Bank
— towards income security in old age | | Author(s) | Les Mayhew, David Smith |
| Corporate Author | Faculty or Actuarial Science and Insurance, Cass Business School, City University London; International Longevity Centre UK - ILC-UK |
| Publisher | International Longevity Centre UK - ILC-UK, London, June 2014 |
| Pages | 25 pp |
| Source | ILC-UK, 11 Tufton Street, London SW1P 3QB. Download also available at: http://www.ilcuk.org.uk/index.php/publications/pub... |
| Keywords | Home equity release schemes ; Income [older people] ; Assets [elderly] ; Reports. |
| Annotation | With shrinking pension pots and longer life expectancy, retirement incomes look set to come under increasing pressure unless alternative sources of income become available. This paper looks at the current market for equity release. It proposes an Equity Bank, which would be a state agency which helps people release income from their homes in the form of a lifelong annuity in return for selling a portion of the equity in their homes to the state, in which the value of the annuity is recovered on the death of the recipient. This paper describes how it could work in practice, by giving examples and estimates of the size of target population and the consequent cash flows both for the individual and the state. The UK Equity Bank would allow people to exchange a fixed proportion of the equity in their home for a lifetime income linked to inflation. Providing people with a secure income by unlocking the equity in housing assets could improve standards of living for the benefit of the people themselves, the local community and society as a whole. (RH). |
| Accession Number | CPA-151113002 B |
| Classmark | WQB: JF: JD: 6K |
Data © Centre for Policy on Ageing |
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| ...from the Ageinfo database published by Centre for Policy on Ageing. |
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