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.