Retirement experts and financial professionals at the inaugural Great Retirement Money Debate last week, called on the government to do more to promote the role of equity release in funding later life.
The wide majority (84 per cent) of the audience at the debate, hosted by the Equity Release Council at the Royal Society of Medicine, felt government must step up its efforts to promote the option of releasing equity to give people a financial boost in retirement.
A second audience vote revealed three quarters (75 per cent) thought the new pension freedoms will have a positive impact on the equity release industry. But opinion was split over how the pension revolution will be seen a decade from now.
Just under half (49 per cent) felt it will be seen as a great benefit to consumers, yet 36 per cent were worried it will be a disaster – a view which was linked to fears over access to advice and the risk of falling prey to scams. The remaining 15 per cent of the audience predicted the pension freedoms will be seen as a non-event in ten years’ time.
Nigel Waterson, chairman of the Equity Release Council, commented:
“The coalition government threw its weight behind pensions, not just by ushering in more freedom and choice for pension savers but by introducing auto-enrolment to get more people actively saving. Both changes hold great potential, but pensions are still just part of the equation when it comes to supporting our ageing population – particularly when the average DC pot of £25,000 is so modest.
“When parliamentary business resumes, the new government simply cannot afford to keep putting its eggs in one basket and overlook the potential benefit of more people tapping into their housing wealth. We urge the Treasury to take ownership of the issue and focus efforts across government on signposting consumers to consider equity release among their options for funding retirement. Using the Pension Wise service to pose this question to over-55 homeowners would be an excellent start.”
