91% of advisers claim a lack of clear and consistent government information is one of the leading barriers to providing advice about the impact of equity release upon state benefits, according to research carried out by Safe Home Income Plans (SHIP).
This research was carried out by SHIP, the trade body for equity release, as part of its campaign to clarify the relationship between equity release and state benefits. The campaign was launched earlier this year with a call for advisers to complete a questionnaire to provide information about their own experiences of advising equity release clients in receipt of state benefits.
23% refer their clients on to another source for advice and answers. However, only 15% would refer them to the Department of Work and Pensions (DWP) for help.
Also, 37% felt that had no clear way of keeping up to date with changes in benefits rules. Those who did look to keep up with developments turned to sources such as the DWP, HMRC and Direct.gov (30%), trade press (11%) and computer programs and software (11%) for the latest information.
88% of equity release clients say they do not fully understand how state benefits and equity release interact, with 51% completely dependent upon financial advisers to explain the relationship.
Advisers claim over 50% of equity release customers are missing out on state benefits that they are entitled to. Also, 42% did not realise that their benefits might be affected by the decision to withdraw the equity in their homes, whilst at 12% thought that they might lose them completely.
SHIP director general, Andrea Rozario , said: “These findings highlight how important it is that advisers have access to clear and consistent information
