According to the EPPARG a lot of new initiatives are now on cards to improve pension schemes for the elderly. As per news a discussion pertaining to simplifying pension schemes, has already been initiated by the European Pensions and Property Asset Release Group. The discussion took place between members who majorly include industry representatives, institutional stakeholders, representatives from the academic and charity sectors. Their main aim is to explore the prospective result based financial solutions which majorly include home equity release.
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According to reports the discussion chiefly centered round issues such as the changes that have been implemented by EU institutions in an attempt to come up with improved financing plans. Steve Kyle, EPPARG’s Secretary General has further opined that a lot of financing institutions are conducting studies on equity release schemes and how conventional pension mechanisms were proving to be futile in meeting new challenges. With the aged population experiencing a rapid surge and the sluggish economy taking toll on the employment market, most people are turning towards equity release schemes.
The study has been conducted to highlight concerns pertaining to what the aged population has been receiving and the constraints they have been facing so far. Apart from such highlighted issues, the study also focuses on a whopping €20bn that is yet to be released on home equity release schemes. The amount will be released for another 10 more years in an attempt to respond to the creasing consumer requirements. These schemes have been majorly introduced to address current financial constraints faced by the elderly population.
These days, financing institutions have come up with home equity release schemes that comprise two major schemes, the first being a lifetime mortgage plan and the second being home reversion scheme. It has been found that an increasing number of seniors are actually heading towards the home reversion schemes because of its flexible offerings.