Recent research has found that 88% of advisers believe the equity locked up in a property should be a key consideration when planning for retirement.
According to the study, which was carried out by LV=, the majority of advisers (95%) consider equity release to be a significant future growth area for their business, and 78% of advisers expect equity release to become a mainstream financial product in the next few years.
The main reason cited as the driver behind continued growth of the equity release market was clients’ needing to supplement their retirement income (60%). One in six (18%) believe that the rise in clients who need to pay off their mortgage and other debts will increase demand for equity release in the coming years.
The findings show that their clients’ outdated view of the industry, and their concerns about leaving an inheritance for their children are two of the biggest barriers advisers face when discussing equity release with clients.
Steve Lewis, LV= Head of Retirement Distribution, said: “In recent months we have seen several high profile discussions, in the House of Lords for instance, highlight the pivotal role housing equity can play in helping to face the challenges of supporting our ageing population. However, it is clear from adviser feedback that there is still much to be done to combat the industry misconceptions that exist amongst advisers and clients.”