The proposals that could give over-55 equity release a real boost
21 August 2019
The Equity Release Council’s report
The increasing use of equity release schemes by people aged 55 and over to fund their retirement means the Equity Release Council [ERC] has unique data and insights to help inform the political debate on this hugely topical issue, which – with more and more of us living longer – is only going to get more relevant and challenging.
The ERC’s Bricks & Mortar provides key insights into later life financial planning. One of its key recommendations is for a cross-party later-life commission.
What the commission would do
Beyond Bricks & Mortar believes the commission would “help meet the long-term needs of people in later life, including via the potential uses of property wealth and balancing intergenerational needs….Understanding the role of housing wealth is a core component to any care funding solution across generations – the great challenge of our age.”
The report also suggests that any new prime minister (and of course we know now that’s Boris Johnson) should appoint a minister specifically for the elderly “who can ensure the broader social and financial issues important to the ageing population are recognised and co-ordinated across all relevant departments.”
Making sure everyone aged 45 and over has advice on financial planning for their later years is another recommendation put forward by the ERC: “to boost financial confidence while encouraging a long-term view and taking all assets into account”. Clearly education is the way forward – it means individuals know what they’ll need to plan for financially to secure their futures and they’ll have a better idea of the options available to them.
Demystifying the market
One aspect of the report that we know we’ve long been championing – and always practise – is the need to demystify the market. If you are fully au fait with finance, equity release, its terms, conditions and implications – great. If it’s all new to you, any scenario is likely to need a full, clear explanation. Whichever category you fit into, you can count on us to take you through every step of the equity-release process, from meeting with you and your family to explain the sort of schemes on offer and how they work, to deciding the most appropriate options to meet your needs. We will be with you all the way, from application to completion.
We fully support the Equity Release Council’s recommendations that later-life financial planning needs proper attention so that people aged over 55 have the right information they need to have confidence in their financial future.