Time should not let us forget the damage that Gordon Brown did to our previously sacrosanct private pension system when in 1997 he imposed a tax on pension funds. This in spite of the long recognised problem of an aging population. What was possibly not anticipated at the time was that this aging population is growing frightened of poverty in retirement and staying in work as long as possible. In retirement terms, 70 is the new 65 and before long, 75 will be the new 70. This of course inhibits the chances of younger people finding paid employment and thereby contributing to tax revenue. And like a snowball rolling down hill, the problems compound. Now we hear that the Chancellor is planning further raids on pensions. How incredibly short sighted can anyone get?
In 2030, there will be twice as many people in UK aged over 85 than there were in 2010 and 51% more aged over 65. Most of these will not have adequate finance for a comfortable retirement which will drive equity release into being a dominant area of financial advice. Those who do not have the requisite qualifications for advising in this area might do well to get into studying mode again.
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