As we reported previously, the Government has abandoned plans for a market that would allow people to sell their pension annuity. If you were hoping to raise money that way, what are your alternatives now? The Daily Mail has an article offering some helpful suggestions. They basically boil down to 2 options – Equity Release, or claiming benefits.
“Consider whether to release equity from your home
If you are struggling to pay the bills on a low annuity income but own your own home, equity release could be an option to free up extra cash – but it is not for everyone, and you should tread with care… Equity release involves unlocking the money in your home while you still get to live there, but it is expensive and will reduce your children’s inheritance.
Check you are claiming everything you are entitled to in benefits
If your annuity and other sources of retirement income are so poor you are suffering hardship, make sure you are claiming every single Government benefit for which you qualify… Benefits provide a safety net for those in need, because our society has decided it doesn’t want people to die from hunger, cold or lack of shelter, and we have elected successive Governments offering policies to ensure this doesn’t happen in the UK.”