Dublin South Central

EQUITY RELEASE FROM DOMESTIC PROPERTY  TO FUND RETIREMENT PENSIONS

I would like to suggest for your consideration an equity release scheme based on the value of your primary domestic property to subsidise your retirement pension. As many people find that their pension fund has not returned the forecast pension pot. The proposal for consideration I am offering is that up to 40% of the value of your property at the time of or after your retirement should be made available to you over a period of time for the purpose of demonstration I offer the following example.

Value of property 300,000 @40% =120.000 over 20 years =6000 per annum or 500 per month. The funds should only be released on a yearly basis. On the demise of the property owner/s their estate will return to the state any sum received interest free.

The benefit to the state of such a scheme would result in capital being injected into the economy by the recipients increasing tax revenues and jobs.As homeownership is nationwide the capital released will be widely dispersed .

It will  reward those who have invested in their own homes and removed the burden on the state to provide housing  and  their affords will be rewarded later in life.

It should also stimulate the housing market as the value of your property will have a real bearing on the quality of your retirement.Incouraging first time buyers to invest in a home and have the benefit of a pension fund  as well .It should also stimulate the trading up in properties as the value of your home will have a direct link to the size of your retirement pot.

This should also lead to an increase in stamp duty and help the government sell off some of the domestic properties held by nama.

(not all homeowners will want to avail of this scheme as the equity released combined with the state and any private pension might become a tax liability)

Working people who are struggling to keep up mortgage payments would appreciate that their affords to hold on to their property will have a pension benefit. While still being able to leave a legacy.

I believe the pension’s deficit is possibly the next great financial crisis that will face the state and it must be dealt with as a matter of urgency. The nursing homes bill introduced into the public conscience that your property may be used to fund your retirement .I believe that any property that you accrue during your lifetime may be considered part of your retirement provision.

My suggestion is that the state should meet the cost of funding this proposal but if it is oversubscribed in time another government may introduce a subsidised interest rate on monies to be advanced. This interest charge could possibly be negated by any real increase in house prices.

This proposal would need considerable research and costing but looks like something that would receive broad approval by homeowners. The large amount of Irish citizens who do not have any pension provision should receive great solace from this proposal. They can part fund their retirement .Live out their last days in the security and familiarity of their own home and leave a legacy to their beneficiaries .This is a caring family focused policy which should receive widespread approval especially amongst those who do not have any pension provision.

Government are calling for an economic stimulus and job creation .This proposal would allow Irish citizens invest their money in their community .Increasing cash in circulation which will lead to job creation and a better quality of life for our older citizens.People will once again be able to be part of a community not just part of an economy .

The controlled release on an annual basis of monies will prevent any inflationary impact .With the new government pensions requirement this scheme should have a limited lifetime but would support those who have invested in a home but could not afford a pension

At present it would not be economically viable for the government to carry the cost of this scheme but a promise to consider such a proposal in the future would be welcomed by those who do not have any pension .