Equity Release Advisers must link with the local press

Advisers should improve the way they market their equity release options and engage with local and regional press, claimed a prominent equity release provider.
His belief is that consumers have a lack of understanding about the equity release options available to them and more specifically, a lack of knowledge as to where they can access professional advice.
Recent research by provider Just Retirement found that 60% of pensioners wanted reassurance that equity release products were regulated, nine out of ten pensioners could not name an equity release lender and four out of ten did not know where to go for advice.
The Equity Release Council was formed in May with the remit to widen the scope and awareness of equity release and clearly there is still a lot of work to do.
This is emphasised by the fact that those people who do understand the need for Equity Release are very positive about how it has helped them to achieve their need.
We as an industry, have to be in full-on education mode at all times and part of the way advisers acheive this is through local media and marketing.

Steve Harrison

Education essential as retirees need equity release

800,000 people believe they will need to release equity from their homes in order to maintain a decent standard of living, according to latest research.

Understood to be the largest piece of consumer research to date, equity releae provider, Just Retirement has found that the average retiree believes they need an income of £17000 a year for a good quality of life.

Retirees and those approaching retirement are also aware that the income they will get from annuities and the state is likely to fall considerably short of this and are open to opportunities such as equity release to bridge that gap.

However, the 32 page report ” The Role of Housing Equity in Retirement Planning”, not only highlights the need for equity release but also the requirement for consumer education about the product. Nine in ten could not name an equity release provider while four in ten did’nt know where to go for help and advice

60 per cent of retirees also wanted reassurances that equity release products are regulated, prompting calls for the government to work with the industry to ensure people are equipped with enough understanding to feel comfortable and confident about using such a product as part of their retirement planning.

Steve

Equity Release up 22% in Q2 as inflation quashes savings.

 

 

Dear Colleague

Homeowners over 55 have collectively released £225 million worth of equity from their homes in the second quarter of the year, accordingly to latest figures from the Equity Release Council (ERC).

April – June 2012 saw an increase of 22 per cent increase against the same period in 2011; the highest quarterly figure since the recession first hit at the end of 2009.

The ERC believe inflation is one of the main contributing factors to the rise, causing savings to slump. According to recent research by AVIVA, the average savings for 55 to 64 years is now just £9400; two years prior the averages stood nearly two thousand pounds healthier at £11,200.

Dr. Ros Altmann is the Director General of Saga, the one stop shop for over 50s:

“The equity release figures tell us that the over-55s need money and they are desperate to find somewhere to get it from. If they own a house that is one of the ways they can get money.

“It may tell us that a lot of them have been disappointed with the pensions they have saved for which have not worked out as they had hoped.”

Evidence is telling us that Equity Release is becoming more and more a necessity for people in retirement as they struggle in these difficult economic times. Repaying mortgages, repaying loans and credit cards to improve income position is becoming more the norm amongst people taking Equity Release out.

A great concern of the industry is that the poor reputation of the industry in the late 80’s still remains and many people continue to struggle wrongly because they have been persuaded  against Equity Release for all sorts of reasons by family or friends at the pub. Equity Release may not be the answer for everybody and for those who may benefit it is vitally important to get the right advice.

To get the right advice please contact me on 01704 512120 or 07714 414545 and I will be only too pleased to help your clients find the best solution to their needs.

Kind Regards

Steve Harrison CeMAP, CeRER

Equity Release Consultant