Will equity release become more important with new budget?

Concerns over the rising cost of living ahead of the upcoming budget may prompt many Brits over 55 years to consider equity release and other alternative retirement options.

Aviva's Real Retirement Report has found that 64 per cent of workers above the age of 55 years are worried that an increase in taxation announced in the emergency Budget would seriously impact their lifestyles and savings.

This age group is highly vulnerable to increases in value added tax rates affecting food, utilities, fuel and entertainment costs.

Clive Bolton, at-retirement director for Aviva Life, said: "Many people in this age group are concerned about the rising cost of living due to their relatively fixed income and this issue really highlights the importance of making adequate preparation for retirement throughout a working life."

Prudential has recently published a report which indicates that 32 per cent of workers will be retiring this year on an income that is lower than the poverty threshold.

Ashall Glover Financial Services are equity release specialists