7 January 2009
Retirement Plus research highlights broker concerns with equity release
Retirement Plus is surprised to see that over three-quarters (76%) of independent financial advisers in the UK are still to enter the equity release market, according to their latest broker research. On this basis there is likely to be a severe shortage of advice, especially as the market expands in 2009.
The research, carried out by Datamonitor, identified why IFAs are not entering the market, with 21% citing ‘concerns over compliance’ and a further 18% citing the ‘unsuitability of market conditions’. This is despite the fact that longevity, lower pension pots and higher living costs are set to drive the equity release market. 17% said they were put off by the ‘need for staff to sit the equity release exams’.
With life expectancy lengthening, people will find they remain retired for longer. Paying for long-term care will also become important for many of them. Older homeowners will need to consider the assets locked in their property and this could offer a lifeline to those whose pension and investments have been hit by stock market falls and inflation.
Duncan Young, CEO of Retirement Plus said: “I’m deeply concerned. In light of tightening economic conditions, equity release is now a key element in a client’s retirement planning options, yet there are still too few IFAs dealing with equity release.
“Brokers do have genuine compliance concerns, but the industry continues to work with the FSA to ensure both advisers and their customers have access to a range of products which are secure. There is also the safety net of knowing that equity release products, unlike sale and rent back, are sold with the endorsement of SHIP, which has rules that go beyond the FSA requirements.
“We at Retirement Plus continually encourage IFAs to sit the exams - in many cases we have reimbursed their fees – because we firmly believe that excellent, independent advice is what the equity release market needs”.
ENDS
All media enquiries:
Retirement Plus, Duncan Young 020 7907 8591
Mainland PR, Melanie Bradley / James White 020 3008 7400
Editor’s notes
Datamonitor research
The research was carried out by Datamonitor in November/December 2008 amongst 100 independent financial advisers in the UK.
Retirement Plus Ltd Press Release
The information contained in this Retirement Plus press release is intended solely for journalists - it should not be used by consumers to make financial decisions. Full consumer product information can be found at www.retirement-plus.co.uk.
About Retirement Plus
Retirement Plus is a Milton Homes company which specialises in providing equity release products. The Retirement Plus range of home reversion plans allow UK residents aged 65 or older to receive full market value for a share of their property at the start of the plan, in return for which they grant Retirement Plus an option to acquire an increasing beneficial share in the property over the life of the Plan. Significantly, these products enable the owner to release their share of the property over time, rather than giving up the full amount at inception. The homeowner can also elect to retain a “protected share” of the property.
Retirement Plus is authorised and regulated by the FSA and is a member of SHIP, the body which is dedicated entirely to the protection of planholders and to the promotion of safe home income and equity release plans. Retirement Plus will only accept business from customers who have received advice from advisers registered with the Financial Services Authority.
Website: www.retirement-plus.co.uk