They also release more property wealth on average than the wider market
Nearly half, or 46%, of customers referred by equity release introducers are using property wealth to gift an early inheritance to family, while around one in seven, or 15%, see equity release as a way of managing potential inheritance tax (IHT) liabilities.
Analysis in the new report from Key Partnerships has shown that clients of equity release introducers are more likely to focus on inheritance issues as the research sought to highlight how the introducer market differs from the wider market and underline the opportunities for potential introducers expanding their services.
It was found that referral customers release more property wealth on average than the wider market at £133,048, compared to £114,354. Some introducers, such as accountants, recorded average amounts of £183,334, the report showed.
However, not all introducer clients are focused on inheritance issues as nearly one in three, or 31%, of introducers stated that the cost-of-living crisis means clients are trying to reduce expenses. Over a quarter, or 26%, are cautious about investment decisions, while a further 20% are worried about retirement finances.
Key Partnerships’ report also revealed that 56% of introducer clients are paying off mortgages – more than double the rate for the wider market at 24% – but just 19% use property wealth to clear unsecured debt compared with 31% in the wider market.
“The differences in how customers in the introducer market use equity release to the wider market reflect the development of the later life lending market,” Jason Ruse, business development director at Key Partnerships, said. “The increased focus on inheritance issues and the interest in using equity release for IHT planning underline the breadth of the equity release market and the potential for introducers to expand the services they offer clients through a referral partnership.
“While there are clear differences, some things remain the same, and introducers will have clients feeling the pinch from the cost-of-living crisis emphasising the role of equity release in meeting a wide range of customer needs.”
