"Regardless of whether it’s Theresa or Jezza in Number 10, the importance of raising equity release as a possible solution to many people’s retirement woes is essential."
I’m sure we all know that the next few weeks leading up to June 8th will be dominated by Brexit debate and toing and froing over whether a hard, soft, diet or full fat split from the European Union is best for Britain. I do worry, however, that in this new environment important issues like housing and retirement finance may get overlooked. Of course, every party will have a stance on these issues, but will it be their focus? Probably not. So, as an industry the focus should be preparing ourselves for putting forward the case for equity release to the next government. The polls and the bookies are saying that will be the Tories, but they don’t have the best record recently. But regardless of whether it’s Theresa or Jezza in Number 10, the importance of raising equity release as a possible solution to many people’s retirement woes is essential.
Whoever leads us through Brexit and into the brave new world of life outside the EU will still have to face the issues posed by our ageing society and the cold hard fact that thousands, perhaps millions, of older people will not have enough money to fund the retirement they really want. The same older people who represent one of the most active voting groups and if the Conservatives do romp home as expected one of the core supporters of the next government. Taking an in-depth look at ageing and retirement finance therefore represents not just an ethical move for the next government, but a tactical one too. And this is one way I believe we should frame our argument.
Equity release as a whole should attempt to lobby the decision makers in Westminster to support our market more so that we can help those in retirement and approaching retirement get the financial flexibility they need. This will send a clear message that the government supports older people’s rights to determine how they live out the rest of their lives, while surely bolstering support from the older cohort. But for decades successive governments, both Labour and Conservative, have tried and failed to address the issue of the ageing society, and few have really approached the problem with any originality. Part of the cure must be giving elderly homeowners the right to do what they wish with their property, If they can, downsizing can free up large chunks of equity and provide the financial freedom many crave. But when downsizing is difficult or undesirable more options need to be available which are flexible accessible and cater for a variety of needs. Many older homeowners believe they have nowhere to turn or at best limited choices. There is still, unfortunately, a long way to go to help potential customers understand how modern equity release works.
Ultimately, the success we have been having within the lifetime mortgage market is small fry. Our records are all relative and the room for growth is incredible. One of the fastest ways we can take equity release into the stratosphere is by getting more support and understanding of the industry from those in parliament. But whilst this may help to highlight the options equity release can offer it certainly wont be easy. So instead of resting on our laurels and congratulating each other on another likely record year, let’s aim even higher and aim to get the recognition we deserve from those in government. Here’s hoping after June 8th we get a party who will accept that we are here to stay and can help go some way to curing the current state of retirement finance and options in later life lending.
