Government should consult with equity release sector

Lifetime mortgage provider More 2 Life has said that the government should drive moves aimed at ensuring accessing property wealth through equity release becomes central to long-term financial planning for retirement.

Its study among specialist retirement advisers found 68% back increased government consultation with the financial services industry aimed at integrating equity release into retirement planning building on recent calls from regulators and MPs.

The Financial Conduct Authority (FCA) is currently reviewing barriers to entry in the equity release market aimed at attracting more lenders while the Work and Pensions Select Committee has recommended including property wealth in the Pension Wise service.

Research from More 2 Life found advisers believe recommendations on health and lifestyle information need to be included in the mix of reforms; around 85% of advisers questioned say it should be a mandatory part of fact-finding process with clients and not just a matter of good practice.

More 2 Life has launched its ‘Big Picture’ campaign to help advisers ensure clients fully disclose details about their health before making a product recommendation to enhance their chances of achieving the optimal financial outcome.

Stuart Wilson, technical director at More 2 Life, said: “There is a growing acceptance that property wealth is central to long-term financial planning and retirement advisers would support more government consultation with the financial services industry.

“That should include making it easier for advisers to discuss health issues with clients. Clearly advisers believe health and lifestyle is important in providing recommendations with the vast majority believing it should be mandatory.”

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