State pension age change: Women urged to act to ‘plug income gaps’ through equity release | Personal Finance | Finance
State Pension payments will be available to individuals who have reached an eligible age, which for most now stands at 66. However, as the state pension age shift has occurred many will now have to bide their time to receive the sum from the Department for Work and Pensions (DWP). This may present financial issues which women will have to learn to navigate to ensure they are protected.
The issue of women having to wait longer for their state pension is one which has been raised by campaign groups such as Backto60 and WASPI – otherwise known as Women Against State Pension Inequality.
As state pension age parity has now been reached, some women, particularly those born in the 1950s, will have to wait longer to receive their state pension sum than they originally expected.
Consequently, covering any gaps in income is likely to be a major pre-occupation for individuals in this position.
Justin Wysocki from Age Partnership commented further on the matter.
Releasing equity from a home is entirely dependent on a person’s circumstances, such as their age, their income and plans for the future.
However, for those waiting for their state pension sum to kick in, it could be worth considering.
Mr Wysocki continued: “Many female clients who have had their pensions pushed back, to bring them in line with men, are looking to plug an income shortfall.
“They have worked hard and set their sights on retiring in their early 60s, to find that they don’t have enough income to cover the drop in salary if they retire.
“Equity release has helped many people cover an income deficit until state pension starts.”
This was a step which was taken by Sally Cable, from Harrogate, who was considering her options.
She said: “I took out equity release because I am property rich and cash poor. I have an occupational pension but not enough to live on, so equity release was a great option for me to supplement my income until state pension kicks in.”
If people do wish to pursue the equity release option, they are always urged to take advice.
This is because equity release can be a complicated issue, and may not be suited to everyone.