Millions face retirement savings shortfalls, raising questions about who will guide them through their options
Air chief executive Will Hale said later-life lending specialists could struggle to capture rising demand unless they adopt AI and streamline how they work.
Air's own data shows fewer than 2,000 advisers placed more than one equity release case over the past 12 months. That thin base of repeat practitioners raises doubts about whether the market could cope with a sharp rise in enquiries.
Speaking at the Air Evolve Summit earlier this month, Hale said there is significant opportunity if more advisers spot later-life needs and more customers consider housing wealth. But he said that only matters if firms have the capacity to handle it profitably.
He said firms should review their operating models before demand rises, rather than ask advisers to work longer hours and handle more cases in the same way. He identified three areas for improvement:
- automating administrative work
- improving referral processes
- reducing time spent on activities that do not need an adviser's direct involvement
Hale also called for technology that removes friction, dependable processes and more advisers who value comprehensive conversations with clients.
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Rising demand
Hale's comments come amid projections of higher demand. Fairer Finance modelling indicates that by 2040, 51% of households aged 60 and over could benefit from using housing wealth in later life.
The Pensions Commission estimated in its May interim report that around 15 million people are saving too little for retirement. It said the figure could rise to 19 million without action.
Equity release lending rose 4% to £597m in the second quarter, following a 9% fall in the first quarter. Advisers surveyed by the Equity Release Council said customer hesitancy is more often a deferral than a withdrawal.
AI as support
Hale said he does not see AI as a replacement for advisers.
"I don't believe AI means replacing advisers," he said.
He said the technology could help firms reach more customers and reduce the cost of advice. It could also allow advisers to differentiate their proposition from execution-only and purely technology-led models.
In his view, firms that embed AI across their business and keep refining its use may gain a sustainable competitive advantage.
The summit brought together later life specialists, mainstream mortgage advisers, IFAs and lenders. Discussion covered ways to reduce administrative workloads and improve customer communications, alongside the risks and limits of the technology.
It followed the FCA's Mills Review, published in July — FCA executive director Sheldon Mills said AI will transform financial services by 2030. Research for the review found about a fifth of UK adults would consider using AI that can act independently, though many remain wary about trust and oversight.
Broker implications
Hale linked growth to more advisers identifying later-life needs. The FCA has noted that standard mortgage brokers can refer customers to advisers who handle lifetime and RIO products.
One later life specialist has predicted that the dedicated equity release adviser could disappear as mortgage advisers stay with clients throughout their lives.
On AI more broadly, networks such as Rosemount have deployed the technology to support advisers rather than replace them. Examples include signing off financial promotions and dealing with ceding scheme providers.
The FCA's Mortgage Rule Review roadmap, published in December, framed AI as a tool for faster advice. It leaves responsibility for the final decision with the adviser.
