Top Ten Tips
Duncan Young

September 2007

Retirement Plus is a relatively new business and as a result it has a great affinity with brokers setting up in the equity release market. We have held many conversations with brokers who have recently passed their CFP exams and who are looking to develop a client bank for the future. We have been asked on numerous occasions if we can help with this process.

The list below may seem obvious, but it cannot be denied that having such a list is a good discipline. It is also important to work out what is productive and what is not –it is just too easy to get sidetracked by seductive opportunities that just never produce written business – some sort of filter needs to be applied.

1. Have a bank of explanations

The equity release market arouses many concerns, often based on half truths and meaningless gossip. A series of ready answers is important. The FSA and CML provide relatively good consumer literature but a high level handout for professionals of the benefits of equity release is also important. How will a non financial services professional recognise that equity release is a solution unless brokers tell them?
Therefore it is important to know why people buy equity release products. Research highlights the usual contenders of home improvements or income enhancement but it also lists debt consolidation and health as noticeable contributors as well. Reorganising ones finances or paying the nursing home are immediate concerns and can lead to a rapid completion and the invoicing of a fee rather some other uses of the money released which are not nearly so urgent.

2. Make full use of provider support

All product providers will provide some support but sometimes do not advertise that fact – make your business development manager earn their salary.

3. Tap into local information networks

It is important to find out how the elderly in your area get their information. It could be via the local newspaper, local websites or simply word of mouth.

4. Get a feel for social groups

The elderly are often some of the more sociable people in society. The might meet up at bridge club, the WI or a local theatre group or art society. These are the places where they will talk about their plans and canvas their friend’s views.

5. Raise your profile

This is perhaps one of the most important tips we can offer. Draw on tips 3 and 4 and place posters or point of sale advertising in places where they will be seen by the right people. Placing articles in the local paper, giving seminars at the golf club or sponsorship of a local competition can also help with this. Press advertising alone will not be enough.

6. Consider lifestyle costs for the elderly

When people reach a certain age there are other costs they need to factor in to their everyday lives. For example they may need help at home or have to pay for sheltered accommodation or local care homes. These costs are often the trigger for equity release.

7. Network with charities or self help groups

Find out about the local or national charities operating in your area. Age Concern and Help the Aged are the obvious ones but there are others such as the Elderly Accommodation Council which are worth checking out.

8. Tap into the sources of free counselling

Who provides free counselling for the elderly in your area? The CAB will, but are there others? – the local council will be aware via its social service provision of cases, but may not be willing to divulge names.

9. Identify the unused services of professional advice

Who advises the elderly for a fee? Are they qualified to give advice? If not will they refer? Solicitors and accountants spring to mind, but is there a will writing service or an estate agent that tends to act for the elderly?

10. Think of the wider family too

Much equity release is instigated by children so do not ignore the 40 and 50 year olds who come in for a chat. As children reach a certain age it becomes more and more likely that they will deal with their parent’s finances. It may be that giving a brochure or handout will pay dividends in a surprisingly short time. So much of this is straightforward –although hard work. But what is equally important is an attitude of mind. Equity release is still shaking off the reputation as a product of last resort to be purchased when all else fails – but increasingly that is not the case. It is instead becoming a product of choice that people review at the same time as their investments or their pension. But to reinforce this there is a need for local examples of people who have enhanced their lifestyles or overcome adversity by using equity release. This is great marketing and assists the best sales tool of all namely word of mouth.

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