A-Day - a house to build a pension pot

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Scottish Life has pointed to the potential cash windfall afforded by equity release following new rules fixed to simplification on 6 April 2006.

The pensions arm of the Royal London Group believes individuals will be able to use their property to create a £72,000 pension pot from £34,000, in line with an ability for investors to pay a sum equal to their earnings into their pension plan with tax relief, while also being able to access tax-free cash from that fund without having to buy an annuity. Scottish Lifeprovides an example of a 50-year-old individual aiming to retire at 65, with an annual salary of £100,000 and £120,000 equity in his property, releasing £75,000 from his property value to pay into his pension. With basic tax...

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