Despite greater financial regulation and significant
improvements in the industry a significant portion of the
population still have negative perceptions about equity release.
Perceptions of equity release need to change from it being seen as
a "product of last resort" to it being a normalised consideration
in the retirement planning process.
The Daily Telegraph recently reported that pensioners who
snapped up property back in the 1970's could be sitting on a
staggering return of investment of more than 1000 percent.
With pension annuity rates falling and today's difficult
economic climate limiting other sources of income, many over 55's
could stand to benefit from cashing in on this wealth. Equity
release allows access to property wealth without the hassle of
selling up and relocating, and recent product innovation has
created a wider range of equity release options and stimulated
competition in the market.
Despite this, recent research from the Equity Release
Council found despite a third of people saying they'd consider
using their home to fund their retirement, only six percent would
consider an equity release product. The industry has worked hard to
shake off any negative reputation it had and the equity release
community needs to communicate this to customers.
It is also crucial we improve the availability of equity
release information. Membership bodies such as ERSA and The Equity
Release Council can help to achieve this, creating recognisable
entities that provide assurance of safe and regulated products.
Read all our roles and our responsibilities
- We will communicate in plain English, not legal jargon.
- Clients will receive fair and balanced reports in writing.
- Clients will receive a personal consultation with a suitably
qualified member of legal staff.