Posted on: 10th May 2018
The equity release market is on the cusp of a revolution, with the market set to double in size over the next five years. This was the overwhelming view of delegates at the recent PA360 Conference in London. There was a general consensus amongst equity release experts that it was important to not only educate clients, but to also educate advisers about the growing lifetime market which is expected to continue expanding as more and more people look to property as a way to fund their .
Stretching out Equity Release
Alistair McQueen, head of savings and retirement at Aviva UK acknowledged that as people are increasingly living longer, savers are struggling to make theirsavings stretch. He told the conference:
“We are all having to look beyond core pension wealth. The second biggest source of wealth for many in the UK is property and these products [equity release] must be brought to the table. Aviva see this market as only going in one direction of growing in years to come.”
Other panel members, including LV’s equity release strategic sales manager Georgina Oxton, and Pure’s head of distribution, Chris Flowers agreed that the market was expanding rapidly, therefore, more education and information for both clients and advisors was not only critically important, but an absolute necessity.
The Risk of Mis-Selling
When panellists were asked how financial authorities would cope with potential mis-selling in this rapidly-expanding market] they argued that as the market has been highly regulated since 2004, they didn’t feel the risks would prove to problematic.
Alistair McQueen said that Aviva was a large, established insurer with a proud record and reputation in the equity market, and was well aware of the potential risks implicit in continued market expansion. However, he added that, despite any potential risks of mis-selling, the market is continuing to expand, and customers are as keen as ever to buy these products:
“I think this debate is coming to an end” he said, “The market has moved on.”
Equity Release Guidance
Chris Flowers noted that the equity release transaction was the only financial services product which requires clients to seek expert legal advice before any deal is concluded. He also added that although the majority of equity release clients are aged 75 and over, that doesn’t necessarily imply that they are confused or more vulnerable. just because most clients of equity release are over the age of 75 does not automatically mean that they are vulnerable.
Georgina Oxton concurred with this view, adding:
“We all take our responsibilities to our customers very seriously. Solicitors provide a very valuable protection.”
Talk to the Experts atToday
Equity Release is just one of many options available to clients for funding retirement, but it is vitally important to be aware of all the available options open to you before you make a definitive financial decision about your future. The financial experts at Haven IFA are here to offer guidance so you will be in the best position to make an informed choice, so call us today to find out more about our services and to see how we can help you plan for a secure and comfortable retirement.