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Think tank wants Govt-funded ‘financial MOT’ for 50-year-olds

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Think tank The Smith Institute is calling on the Government to provide a “financial MOT” when people reach 50 to ensure they are prepared for retirement.

The idea has been put forward as part of a paper by The Smith Institute on supporting the equity release market, the Daily Mail reports.

The Smith Institute wants to see the Government offer financial advice for low-income workers approaching retirement, who it argues will not be used to paying for financial advice.

Co-author of the paper Paul Hackett says: “Future generations of low income retired homeowners will increasingly struggle to meet the costs of repairs and adaptations for healthcare needs.

“To avoid unnecessary hardship, homeowners much plan ahead, including better utilisation of their housing wealth. The Government should help by offering a financial MOT for everyone at the age of 50 and on retirement.”

The paper flags the cost burden of long-term care as a particular area of concern.

The Smith Institute is also calling for a minister to be appointed who is specifically responsible for equity release.

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Comments

There are 10 comments at the moment, we would love to hear your opinion too.

  1. God help us ! Will this government actyually deal with the issues confronting the country. If successive governments hadn’t removed tax credits on pensions, turned a blid eye to widespread financal product misselling, ended final salary pension schemes them most 50 year olds woudl be in a bettre place anyway. Please don’t insult our intelligence !!!!!

  2. They could have saved all of this by getting the RDR right in the first place now they want a new Quango costing £millions a year to do what the private sector did for decades , unbelievable and totally incompetent. Why not give make every 50 year old complete an (online) fact find then give them a voucher (redeemable by offsetting against tax to keep admin costs low ),for 1 hours advice with a qualified adviser ,at say £200 and if they want more they find it themselves?

  3. As long as we don’t end up paying for it, like the wrongly named MAS.

  4. “The Smith Institute wants to see the Government offer financial advice for low-income workers approaching retirement, who it argues will not be used to paying for financial advice.”

    Exactly how does the taxpayer paying for this advice help low-income workers understand the value of advice?

    Incentivise them. Offer 50% tax relief and tax free income on the way out on stakeholder level contributions. Limit it to BRT payers only (not in receipt of dividends).

  5. As a 50 plus member of society who had planned to retire at 60 (yes I know very stupid) who is now funding a Son through a medical degree and who only last year received a letter telling me I have to work to 66 for my measly state pension and has seen my pension funds do next to nothing for the last 6 or so years. Thanks Aviva, which of course all means those plans went out the window. MOT, you joke surely?

  6. @Felix
    You are funny!
    Who else do you think they have in mind?
    They are stealing our work and making us pay for the privilege.
    The government has no money so we are the new cash cows.
    Only problem being, there will soon not be enough of us left to fund the quangos.

  7. Review at age 50? So only 30 years to late then…

  8. I fail to see how financial ‘MOT’, note how they shie away from using the term advice, at age 50 will make any difference – if someone is a lower earner it is highly unlikely that they will have the resources to make any changes to their situation anyway.

    This is why this country is in such a mess – lots of theories but no actual action.

  9. Financial MOT. You’ve got an old clapped out model as you’ve been driving it to fast, failed to get it serviced since you bought it and now you want me to repair it for you, provided the parts and do the labour for free. Let me think about that says the mechanic? I know why don’t you go f…. yourself

  10. More left-wing carp by a “hasn’t thought tank!”

    The time for a financial MoT is before the 1st pay cheque arrives when first starting work.

    If no provision has been made, by 50 it’s almost too late in a meaningful way, unless the client is so loaded that he doesn’t need provision.

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