The Conservatives will help older people buy new homes by mounting a crackdown on banks refusing to lend them money and bolstering the government's new pension freedoms.
A future Conservative government will launch a review led by Ros Altmann, the former director of Saga, who will be nominated as a Conservative peer and appointed minister for consumer protection.
She will mount a crackdown on "blatant age discrimination" in the mortgage markets, where banks are refusing to lend to older workers even though they will have secure pensions to help meet repayments in their retirements.
Dr Altmann will also consider bringing in "charge caps" to protect pensioners from excessive fees while developing the Pension Wise advice service so it helps people at "every stage of their lives".
The work will be particularly significant in view of the government's flagship pension reforms, which enable people over the age of 55 to invest their pension pots as they see fit instead of being tied into annuities. Many pensioners are expected to use their money to buy new homes.
David Cameron said: “We're taking the country's leading expert on pensions, on savings, on financial education, and saying that if we're re-elected she'll be at the heart of government.
"[She will] make sure we complete this great revolution where we're giving people much more power to save, to access their pension, to pass their pension on to their children, because we want to create a real savings culture in our country for everybody. Not for the rich at the top, but for everybody who saves or has a pension."
Research by The Telegraph found that banks are routinely denying mortgages, credit cards and loans to older borrowers.
Many banks refuse to lend to customers beyond age 65, while some extend the limit to 75.
Even customers in their 40s and 50s who do not want to increase the size or length of their loan, and those whose circumstances or earnings have not changed, are being rejected for new deals due to their age.
Dr Altmann accused banks of treating older people like "third class citizens" by refusing to give them mortgages on grounds of age.
She said: "Companies are refusing mortgage loans to people just on the grounds of their age. Instead of looking at their income and circumstances they are just saying you are too old, you can't have it. The assumption is that by the time the loan finishes you won't be able to repay it.
"That line of thinking is wrong on so many counts. First, you may well still be working, second many people have very secure pensions. Very often it's the same company you already have a mortgage with. It is ridiculous, it is blatant age discrimination."
Dr Altmann, who was the Coalition's older workers tsar, also called for greater transparency in the financial services industry and an end to "rip off" charges for pensioners.
There is growing concerns that pension companies will exploit savers withdrawing money under the governments new pension freedoms.Some middle-class savers are being asked to pay £240 fees for each withdrawal.
It comes as an investigation by Telegraph Money found that pensioners are losing hundreds of thousands of pounds by putting their life savings into "unregulated" investment schemes.
Article from the Telegraph