The uses for equity release have diversified in recent years, and previous misconceptions are beginning to shift. There’s a growing realisation that it’s far more than a last-ditch option for indebted homeowners. In fact, recent press coverage has highlighted the fact that the remit of equity release is now becoming broader than ever before and appealing to a wider demographic of customers.
An increasingly wealthier client base
These days, equity release is attracting a growing number of older, ‘asset rich’ clients at the more affluent end of the spectrum, and they’re not just freeing up funds to finance home improvements or one -off holidays. Equity release for these clients is increasingly being used as part of a holistic retirement planning strategy and as a vehicle for efficient Inheritance Tax planning, particularly in the wake of the pension reforms.
A growing range of uses
Our latest Real Retirement Report shows that 19% of over-50s have financial dependents, with 10% of people still working in retirement purely to support them. So it’s no surprise that homeowners are increasingly helping their financial dependents (in many cases, adult children) get a foot on the property ladder. Using property wealth to provide children with a living inheritance may not be the best option for everyone, but could be an effective way of helping loved ones when they need it most.
Don’t let the opportunity slip through your fingers
As equity release continues to extend its scope to a wider target audience and a wider range of uses, it is increasingly forming a coherent part of broader retirement strategies.
If you’re not yet qualified to advise on this rapidly growing area, you could be missing out on a much bigger target market than you imagined.
So why write off equity release business when you could be writing it instead?
Find out more about qualifying to advise on equity release at Aviva for Advisers
Download our Real Retirement Report