Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Govt To Launch Equity Release Pension Scheme-- Merged

Recommended Posts

Who would have guessed....still will save lots in welfare costs in the future, old enough to start spending the house, pension top-ups. ;)

Share this post


Link to post
Share on other sites

http://www.bbc.co.uk/news/magazine-27189951

Koreans could once be sure that their children would look after them in their old age, but no longer - many of those who worked hard to transform the country's economy find the next generation has other spending priorities. As a result, some elderly women are turning to prostitution.

Kim Eun-ja sits on the steps at Seoul's Jongno-3 subway station, scanning the scene in front of her. The 71-year-old's bright lipstick and shiny red coat stand out against her papery skin.

Beside her is a large bag, from which comes the clink of glass bottles as she shifts on the cold concrete.

Mrs Kim is one of South Korea's "Bacchus Ladies" - older women who make a living by selling tiny bottles of the popular Bacchus energy drink to male customers.

But often that's not all they're selling. At an age when Korean grandmothers are supposed to be venerated as matriarchs, some are selling sex.

As GDP now includes prostitution perhaps we could pimp out Britain's grannies as well. What a guaranteed income find a nice relaxing job....

Share this post


Link to post
Share on other sites

....they give it in one hand, then they take it away with another, whats new......could be an incentive to downsize and put the free equity accumalated over the years into a nsi penioners investment helping with old age costs or give it to grandchildren to help to buy them a home they can now no longer afford to buy or it could just go on caring fees....who knows. ;)

Share this post


Link to post
Share on other sites

No link just heard it on bbc government to launch a equity release scheme for over 75 to fund extra pension from value of home. Will give homeowner a lifetime income.

Fundamentally a good idea in my opinion but I would like to know the details.

For me, it would further reduce the need to ever get an annuity.

Share this post


Link to post
Share on other sites

Fundamentally a good idea in my opinion but I would like to know the details.

For me, it would further reduce the need to ever get an annuity.

I'm guessing this is going to be aimed at the BTL, the government knows it's missing out of the revenue stream this way your BTL is your pension..... Sell a chunk to the govt for a guaranteed income plus the rent..... Govt then on the hook for repair costs?

Share this post


Link to post
Share on other sites

Could be an incentive to stay in your over large house reducing supply for younger people and keeping prices high ;)

Hurrah! The "free market" triumphs once more (kidding).

Depends on the cost.......sure the wider family will be ready to offer their valued options.....or they could move in. ;)

Share this post


Link to post
Share on other sites

Another attempt to prop up house prices by underwriting current values with taxpayer's money, socialising any losses from a fall in prices ( just like HTB)?

"We're all in it together", or if we aren't, they'll make damn sure we are.

Not to mention the disincentive to downsize already noted.

Share this post


Link to post
Share on other sites

they take

...they take it back in what it could save on paying out extra smi, or pension support or even winter fuel, care and other pensioners costs......equity release is what it says...means tested on net worth/income?....only a thought. ;)

Share this post


Link to post
Share on other sites

Off topic but I'd make them pay something towards their prescription charges. Where I live they walk out the surgery, straight into the pharmacy (its in the same building - go figure) with wreaths of prescriptions. The pharmacy staff number half a dozen and are constantly on the go. No one seems to be getting any better.

Share this post


Link to post
Share on other sites

I think the thread title should be changed to 'Think-tank Recommends That Government Launches Equity Release Scheme.'

A Westminster-based think-tank, the International Longevity Centre UK, has produced a report recommending that Government implement an equity release scheme for older homeowners, and the report will be presented in a House of Lords Committee room on Thursday.

This may well be part of the 'Yes Minister' type circus where Government responds to recommendations from a charity-based pressure group, but even so, I would imagine we're a long way from anything concrete.

Share this post


Link to post
Share on other sites

....they give it in one hand, then they take it away with another, whats new......could be an incentive to downsize and put the free equity accumalated over the years into a nsi penioners investment helping with old age costs or give it to grandchildren to help to buy them a home they can now no longer afford to buy or it could just go on caring fees....who knows. ;)

One should question why they take so much in the first place.

Share this post


Link to post
Share on other sites

Cass Business School's major sponsors

AXA Private Equity
Bariba Corporation
Bloomberg
BNY Mellon
Bureau Van Dijk
City of London
Credit Lyonnais
Credit Suisse
Dealogic
Ernst & Young
Mergermarket
Santander
Thomson Reuters
Though total donations are only 5% of income.
9% of income (£5.5m) is from Gov’t HEFCE research and tuition grants

Share this post


Link to post
Share on other sites

I wonder how much 'equity' there is in the UK housing market? Would be interesting to see it broken down into;

  • Equity as a product of debt repayment.
  • Equity as a product of debt expansion.

The difference being 'phantom equity' which, as we all know is being protected at all cost.

Share this post


Link to post
Share on other sites

Oh FSS.

If people in big houses want to release some money for retirement let them sell the big house and move into a smaller one.

or their small flat...which is where many of the elderly live.

Share this post


Link to post
Share on other sites

It could be a modern variation on indentured peasantry.

Each generation has to "buy" the same land+house over again from the Crown.

Government and the Lenders turn out to be two cheeks of the same arsehole.

The liaison between the bankrupt of england the govt. being a prime example.

Share this post


Link to post
Share on other sites

Step 1.

Make access to pension capital from 55 available.

Step 2.

Open a scheme where the government take your "equity" in return for an income.

Step 3.

A few years down the line pension capital and house equity will be counted for means testing.

Step 4.

Ensure no capital is passed down the generations.The government needs to stop people who have worked all their lives paying their mortgage off and retiring in their 50s when they get an inheritance.20% of the UK population will never work and need benefits.Its crucial to the government the people who do work hard cant ever stop.

The rich of course arent counted here.This is all about getting hold of the capital from people who might have £100-£200k in net assets.

Destroy wages,destroy pensions,then take capital.

Edited by durhamborn

Share this post


Link to post
Share on other sites

Oh FSS.

If people in big houses want to release some money for retirement let them sell the big house and move into a smaller one.

This may work in the SE but not in the rest of the county. My 3 bed is worth £180,000 I would quite happily move to a 1 bed house so long as I could have a shed for bikes and a dive to park the car. Have a look around at houses you would be happy to down size to when you retire.

Share this post


Link to post
Share on other sites

As such it sounds like a good idea. I don't want to be poor all my life and die with a massive amount tied up in a house.

The thing that I am worried about is the interest on the equity release. Are they going to let the banks have virtually free money and then charge 7% to the customer? This is what they have done with the green deal.

Gets me how some of these government schemes work. Had some one ring me up about the boiler scrappage scheme. When I said I was interested because my boiler had broken down I was told I was not legible for the scheme. Seems they only want to replace perfectly working boilers.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   203 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.