According to a recent poll conducted at the Great Retirement Money Debate (held by the Equity Release Council), many respondents believed that the Government had not effectively promoted the benefits of equity release as a source of retirement income.
Out of 150 representatives from the retirement industry – including providers, membership bodies, advisers, charities, and experts representing leading think tanks – 84 per cent felt that the Government needed to do more to advise people on how money released from their property could help to support them during retirement.
While 75 per cent thought that recent changes to enable pension freedoms would have a positive impact on the equity release industry, some respondents feared that poor advice meant that consumers were at a higher risk of falling for scams.
Nigel Waterson, chairman of the Equity Release Council, said: “When parliamentary business resumes, the new government simply cannot afford to keep putting its eggs in one basket and overlooking the potential benefit of more people tapping into their housing wealth.
“We urge the Treasury to take ownership of the issue and focus efforts across government on signposting consumers to consider equity release among their options for funding retirement.”
Equity release is not suitable for everyone, though it can certainly be a valuable method of helping to generate a retirement income alongside other investments and income streams.
The Council recommended that the Government should start to use its Pension Wise service to promote the benefits and options surrounding equity release to individuals close to retirement age; however, in-depth expert advice is still the best means of assuring that retirement planning is tailored to an individual’s circumstances.
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