The study found that 77% of advisers believe the Government should consult with the financial services industry in order to ensure that equity release becomes more integral to long-term financial planning.
Around 70% say recognition from Pensions Minister Baroness Altmann that equity release can play an important part in retirement planning would be a major boost for the market which is recording strong growth.
More than half (55%) would back a Government-funded consumer awareness campaign highlighting the benefits of equity release while 48% would support equity release information being added to Pensions Wise.
The support for Government backing for equity release is partly driven by advisers’ belief that not including support for equity release in pension freedoms was a missed opportunity – 53% of advisers say equity release was overlooked in the April launch. The Financial Conduct Authority announced in September it would review equity release rules after fears not enough pensioners were using property wealth, and in October the Work and Pensions Select Committee recommended the inclusion of property wealth within the Pension Wise service
Key Partnerships believes that as equity release plays an increasingly important role in long-term financing planning advisers need specialist support in place to ensure they can maximise retirement outcomes for clients.
Will Hale, director at Key Partnerships, said: “Average pension pots are around £30,000 while millions of retirement savers will have more than six or seven times that amount invested in their home highlighting how property wealth can play a major role in improving retirement lifestyles.
Advisers recognise that the early months of pension freedoms are the ideal time to capitalise on the growth of the equity release market for the benefit of savers and would like to see Government support.
It is encouraging that advisers are becoming more aware of the role that equity release can play in retirement income planning, however it is equally important that they seek specialist advice and feel supported by the government. Promoting the benefits of equity release to consumers can provide advisers with the confidence to recommend equity release as a viable option.”
