Families of homeowners considering equity release should be involved the advice process in order to reduce complaints.
That’s according to a survey of equity release advisers, who think including children and grandchildren in discussions around taking out the products would give them a better understanding of the process.
According to more 2 life, which conducted the research, evidence suggested family members who took part in discussions about their parents’ equity release plans became more engaged with the product and had better understanding.
However, in instances when family members were not involved, they sometimes made complaints further down the line because they were upset they didn’t know about their parents’ decision.
Why the secret?
But while 80% of advisers thought getting children and grandchildren involved would improve understanding and cut down complaints, they admitted there could be barriers.
For one, many people who take out equity release said they didn’t tell their families because they were struggling financially and were too proud to tell their relatives.
A very large majority said they were capable of making their own decisions and felt no need to get their families involved. Others didn’t want to worry their loved ones.
Many advisers reported their clients thought they had already provided their family with enough financial help and didn’t want them to feel they were owed more.
Important role for families
However, Stuart Wilson, corporate marketing director at more 2 life, said there was an important role for families to play in supporting older relatives during their equity release journey.
He added: “It is encouraging to see that when families are involved in the equity release process the vast majority feel positive about the benefits of equity release and how it can help their older family members improve their standard of living.
“Not only are those families who are involved in their relatives’ decisions more supportive of their choices but ultimately less likely to raise a complaint when the products are eventually redeemed.
Raising standards
“This is hugely significant for the industry as we work very hard to maintain high standards of product innovation and advice so it is extremely frustrating when someone complains as they didn’t realise their parents had used equity release to access the value of their home.
“While it is natural for us to look at educating potential customers, as an industry we also need to consider raising awareness amongst the younger generations as they can have a material impact on their parents’ choices.”
