Raising awareness of equity release innovation
It comes following a survey by the lender which revealed over half of adult children were worried about their parents’ finances.
Many were concerned the state of their parents’ finances would prevent them fully enjoying retirement and that they might run out of money altogether. Meeting later life cost, such as care, was also a fear of many adult children.
However, nearly a third said they would be happy for the parents to downsize in order to support their financial difficulties, and 21% said they would be keen to see their parents release equity from their property.
Now more2life wants lenders and brokers to work to together to increase awareness amongst families of how unlocking housing wealth could help them to meet financial challenges.
Inheritance concerns
Dave Harris, chief executive officer at more 2 life, explained how in conversations with advisers one of the comments he heard was that clients didn’t want to touch their housing equity as they wanted to leave an inheritance to their children.
He said: “While this is something that most children are likely to appreciate, this research clearly highlights that not only do they worry about their parents’ finances but they would prefer them to take proactive steps to improve their financial situation if they are struggling.
Harris added: “Whilst the equity release industry has experienced historic levels of lending in recent years, it’s crucial for lenders to continue working with advisers to raise awareness among families of the benefits of unlocking property wealth.
“Inheritance is a family concern but so is the fact that the older generation enjoys their retirement and can pay for costs such as care.”
Product innovation
Harris said market innovation meant there were more products available than ever to meet individual client retirement needs. However, he said the industry needed to work hard to ensure that people realised just how much the market had evolved.
“Advisers are key to educating people and their families so they – at the very least – start to discuss how housing equity can help solve some of the financial challenges they may face in the future,” he added.