The National Association of Pension Funds (NAPF) today reacted to reports that Lib Dems want home ownership to be boosted by allowing younger family members to secure mortgages against part of the pension pots of older family members.
Joanne Segars, NAPF Chief Executive, said:
"There are housing market tensions which need addressing, but we wonder if this is a good solution. We need to see more detail on how this might work.
"At first glance this idea leaves us feeling slightly uneasy. A pension can only be spent once and this policy could end up leaving retirees out of pocket. The UK already has a serious problem with people saving too little for their old age.
"The Coalition Government has already looked at letting people have early access to their pensions and decided against it. People need to keep their pension for their retirement, especially with rising longevity and the costs of long-term care."