Equity release is key solution

A prominent All Party Parliamentary Group convened last week to discuss equity release providing a key retirement funding source, meeting the financial deficit facing Britain's ageing population.

The All Party Parliamentary Group, focusing on insurance and financial services and led by Baroness Hollis of Heigham, identified many key issues that required government attention including:

• The urgent need for initiatives to increase the public trust in the equity release market
• The need to ensure and maintain a high standard of advice to support the growing demand
• The requirement for government to go further in their support for the industry as a key retirement funding solution

Commenting on the meeting, Andrea Rozario, director general of Safe Home Income Plans (SHIP), said, "It is gratifying to see housing equity taking its place in the mainstream retirement funding canon. Last night's All Party Parliamentary Group produced some excellent debate, recognising the financial challenges that Britain's older generations face. Of course, developments must be made and challenges lie ahead for providers, distributors, government and consumers alike - but the debate produced by this group is the first vital step in bringing equity release much closer to the heart of government thinking.

"SHIP remains committed to changing the way that the equity release industry has historically been perceived. Equity release products represent a real and immediate solution to financial problems facing older people every day. Our work has led to recognition from both major political parties. We will continue to build on this success to provide a product and a solution that is both safe and very necessary."