Adviser expect significant equity release growth

The research also found that 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.

Steve Lewis, head of retirement distribution at LV=, said: “For many people their property is their greatest asset so it is encouraging that advisers believe that the capital tied up in someone’s home should form part of initial retirement planning discussions.

“In recent months we have seen several high profile discussions by 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 the retirement specialist said adviser feedback had made it clear that there is still much to be done to combat the industry misconceptions amongst both advisers and clients.

The research found that clients outdated views of the industry and concerns about leaving an inheritance for their children are two of the biggest barriers advisers face when discussing equity release with clients.

However a third (30%) of advisers admit that it is their own lack of understanding about the equity release market which has stopped them from writing equity release business.

Lewis continued: “At LV= we are committed to supporting advisers wishing to promote the benefits of equity release to their clients.

“To this end, throughout May we will be holding a series of face-to-face workshops focused on marketing and business development and the pitfalls to avoid when marketing equity release services.”