The National Association of Pension Funds (NAPF) today reacted to reports that Lib Dems want home ownership to be boosted by allowing younger family members to secure mortgages against part of the pension pots of older family members.
Joanne Segars, NAPF Chief Executive, said:
"There are housing market tensions which need addressing, but we wonder if this is a good solution. We need to see more detail on how this might work.
"At first glance this idea leaves us feeling slightly uneasy. A pension can only be spent once and this policy could end up leaving retirees out of pocket. The UK already has a serious problem with people saving too little for their old age.
"The Coalition Government has already looked at letting people have early access to their pensions and decided against it. People need to keep their pension for their retirement, especially with rising longevity and the costs of long-term care."
Notes to editors:
1. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Contacts:
Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]
Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]