98 per cent of IFAs expect significant Equity Release growth
An overwhelming majority of independent financial advisers are anticipating a substantial increase in equity release business, according to research by insurance and equity release provider Liverpool Victoria (LV=).
“A shortfall in pension provision”¹ and “a desire to pay off existing debts”¹ are the primary reasons for this widely held belief.
68 per cent of the IFAs surveyed also predicts an influx of former equity release providers re-entering this growing marketplace within the next 12 months.
Vanessa Owen is the Head of Equity Release at LV=. She said:
“It was very encouraging to see the almost universal belief from these IFAs that equity release has a strong role to play in helping to solve problems such as the funding of long-term care and a lack of pension provision in retirement. For many people, their home is their greatest asset so it is understandable that more and more people will want, or need, to access the equity in their home.
“Given the expected surge in demand for equity release it was encouraging to see the number of IFAs that attended our equity release roadshows this spring, wanting to find out more about how to make equity release a bigger part of the advice service they offer to clients. We also offer access to an LV= toolkit, providing advisers with their own branded marketing material and client communications to help raise awareness of equity release among their clients.”¹
Whilst market growth appears an encouraging step, such an event could open the proverbial can of worms given the specialised nature of equity release products. This complexity is recognised amongst IFAs with 89 per cent believing “equity release should only be sold by specialists in the industry”¹.
Anyone considering equity release is advised to seek specialist financial and legal advice to ensure the nature, effects and implications are fully explained beforehand. The GWLifetime Team are legal specialists in equity release and can help answer any equity release questions and concerns clients may have.
¹LV= (Aug 2011)
Content correct at time of publication