The recent IMLA report ‘Bridging the gap: developments in later life lending to an ageing population’ suggests that the number of over-65 homeowners has increased by a half in the last 20 years, from 4 million to 6 million. Never have older borrowers had so much power over the property market, and whilst this market is thriving, it is also influenced by several different factors, including increased regulation as consumers increasingly buying for the first time in their late 30s or 40s.
The Mail on Sunday recently reported that the Treasury is considering a change to pensions that will affect “people who can afford to put tens of thousands of pounds into their schemes each year.” The pension’s annual allowance would "hit people making large contributions without penalising middle income earners".
Go back a few decades and the average family unit consisted of Mum, Dad and 2.4 children. 2.4 Children also being a popular comedy TV series in the 1990s about an average family. In this actuarially average family Dad was three years older than Mum, and Mum was expected to live three years longer than Dad. Mum would therefore be expected to live six years on her own without Dad, but those 2.4 children would be there to support her. She would not be on her own.
Interest rates are now at their highest level since February 2009 when they were cut from 1% to 0.5%. The Bank cut the base rate to 0.25% in August 2016 before raising it back to 0.5% in November 2017. In its meeting, the MPC agreed that the economic dip in the first quarter was temporary, with momentum recovering in Q2.
The government is reportedly considering abandoning the roll out of the pension’s dashboard, which has already been successfully tested for 15 million consumers. According to The Times, Esther McVey, who became secretary of state for work and pensions in January, "has moved to kill off the project" as she does not believe the service should be provided by the state.