21 January 2009 

Research among IFAs highlights consumer concern about releasing equity from property

The latest research from equity release provider, Retirement Plus, shows that 42% of IFA clients considering equity release worry about the impact it will have on the inheritance they leave behind.

The research, carried out by Datamonitor, also identified that a quarter of clients are anxious about the impact falling house prices will have. Duncan Young, CEO of Retirement Plus says: “On one hand, consumers are being pulled by strong market drivers such as smaller pension pots and higher living costs, making equity release an attractive option. Whilst on the other hand, inheritance concerns and the current instability in the housing market is putting them off.”

“Our equity release Property Plans go someway to answering those consumer fears inasmuch as they can opt to keep a protected share of the property which will always remain intact should they want to leave an inheritance. And, over the life of the Plan, the customer will know exactly where they are value-wise with their property at any given time. We do advise that anyone considering taking out equity release should seek specialist advice from an independent financial adviser to ascertain the best product for their individual circumstances.” 

Mr Young continues: “We are also concerned that 13% of IFA customers don’t understand equity release products. There appears to be still much to be done by providers to educate the IFAs and their customers about the various products available and how they might fit with other retirement planning tools. We all have to ensure that products are presented in a simple and unbiased way.”

ENDS
All media enquiries:
Retirement Plus, Duncan Young   020 7907 8591
Mainland PR, James White / Melanie Bradley 020 3008 7400

Website: www.retirement-plus.co.uk