We also pick one reader contribution as our Star Letter. This week’s award goes to this contribution.
Not an easy scenario to cater for when state retirement age definitions and fundamental pension rules shift at the whim of successive governments; exacerbated by employment law now dictating that there is no compulsory retirement age for anyone.
Add into the mix automatic enrolment that an employee can opt out of and you move towards a “perfect storm” position that plays directly into the hands of our beloved claims management culture.
Mortgage advisers should stay safe in a low interest rate environment by keeping customers’ mortgage terms at least a year below the point in time when their client might pick up some state pension entitlement (provided they are not in an occupation with EARLIER retirement ages of course).
On the premise that not many people retire on a higher post-retirement income than they enjoyed whilst working, if they can’t afford a mortgage TODAY that finishes before state retirement age they should lower their aspirations.
You can read more of this week’s best reader comments in our Star Letter Extra column HERE.