28 August 2007

Retirement Plus publishes results of its first independent equity release research

Have you heard of the term equity release?

Duncan Young, Managing Director of Retirement Plus, says: "The numbers are slightly higher than expected. It appears that people are considerably more knowledgeable about equity release than they have been in the past. The fact that 20.7% of people had heard of SHIP was very surprising. SHIP is obviously better at self promotion than people give credit for."

Would you consider using the value of your home to raise some cash?

Duncan Young comments: "Just under 6% would consider using equity release as soon as next year which shows a huge increase in interest in the equity release market. In total, the research shows that 35% of people would consider equity release. It is an encouraging sign that around 350 in 1000 people are thinking of finding out if equity release can help them in their retirement. It seems that many people are now thinking about equity release as a viable option to use. Perceptions have definitely changed over the last year."

If you were to raise some cash what would it be for?

Duncan Young says: "One in eight said they would use the money released from their property to repay debt. This is a high figure, but is indicative of how many older people have debts remaining even into their retirement. There is not really one answer here that stands out and that is because people use equity release for all sorts of reasons, it should not be pigeon holed."

If you were to raise some cash what would you want?

Duncan Young comments: "58% of people want a lump sum. Nowadays approximately 60% of SHIP member sales are drawdown products. It begs the questions: are people really getting what they want from equity release products? And are the FSA driving people towards drawdown?"

For those already retired - Do you consider your retirement income to be adequate?

For those not yet retired - Do you consider your retirement savings to be sufficient to keep you throughout your retirement?

Duncan Young said that those people who said their retirement savings would not be sufficient would be spot on. "With changes in attitudes towards savings and pensions I think it is safe to say that there will be a considerable number of people whose retirement provision will not be sufficient - there is a real problem coming and this shows that people are more switched on to the problems they may face."

If you were considering using the value of your home to raise cash, where would you go to for advice?

Duncan Young says: "This is very interesting. Over a quarter said they would go to a bank for advice on equity release even though banks do not operate in the equity release market. HSBC is the only bank which has a referral service for equity release."

If you were to take advice where would you want it?

Duncan Young comments: "85% of people want face to face advice, which is interesting as I know many people prefer to receive advice on equity release over the phone. I also expected the numbers for phone based advice to be higher because of the number of brokers who only provide a phone based advice service."

For more information and a copy of the research in full please contact Zoe Butt at Mainland on 020 3008 7409 or email zoeb@mainlandpr.com.

Editor's Notes

Research

This research was carried out on behalf of Retirement Plus, the affinity partner of United Co-Operatives. Earlier this year they joined forces to promote equity release plans through more than 900 United Co-Operatives outlets in the North of England, in the first equity release joint venture involving a major retailer.

Retirement Plus is promoting equity release through United's food stores, pharmacies, travel agencies and car sales, under an agreement reached with United Co-operatives and NHFA, a whole of market adviser. The equity release promotion features in-store advertising, as well as leaflet drops around the stores.

This independent piece of research was carried out face to face as opposed to over the phone or over the internet. Previous research of the equity release market has been amongst people who have applied for, or taken out, an equity release product.

A total of 1000 interviews were conducted at 5 different United Co-Operative stores in areas with differing levels of affluence.

The interviewees were aged 35 years and up, 59% were male and 41% were female. 49% of the interviewees were retired and a high proportion (82%) were homeowners.

Interviews were conducted between 10am and 6pm between 21st and 26th June.

The research was carried out by MBA Independent Researchers.

About Retirement Plus

Retirement Plus launched in 2005 and specialises in providing equity release products. The company is backed financially by property investors including FTSE 100 property company British Land, and the UK's leading privately owned property-related asset manager, Delancey. Managing Director is Duncan Young, Head of Sales Fred Paton and Commercial Director Chris Rumsey.

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.

The Property Plan is the biggest ever development of the home reversion concept. Retirement Plus does not take direct applications from consumers. The Property Plan is only distributed through intermediaries, because of Retirement Plus' insistence that the product is accessed with advice.

Website: www.retirement-plus.co.uk